A retailer is considering two possible definitions of “in stock”:I. A product is in stock if it has at least one unit on hand at the end of the day.II. A product is in stock if it has satisfied all demand during a day.For a fixed order-up-to level, which definition yields the higher in-stock probability? a. Definition I because if one unit is on hand, then all demand must have been satisfied.b. Definition II because the firm is more likely to satisfy all demand than to end theday with one unit on hand.c. Definition II because if all demand is satisfied, then there must be some inventory left over.d. Either one is possible because it will depend on the particular order-up-to policychosen, the distribution function of demand, and the lead time
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A retailer is considering two possible definitions of “in stock”:
I. A product is in stock if it has at least one unit on hand at the end of the day.
II. A product is in stock if it has satisfied all demand during a day.
For a fixed order-up-to level, which definition yields the higher in-stock probability?
a. Definition I because if one unit is on hand, then all demand must have been satisfied.
b. Definition II because the firm is more likely to satisfy all demand than to end the
day with one unit on hand.
c. Definition II because if all demand is satisfied, then there must be some inventory left over.
d. Either one is possible because it will depend on the particular order-up-to policy
chosen, the distribution function of demand, and the lead time
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