In the single-period model, if excess cost is double the shortage cost, the approximate stockout risk, assuming an optimum service level, is ___ percent.
A)100
B)67
C)50
D)33
E)5

Name: In the single-period model, if excess cost is double the shortage cost, the approximate stockout risk, assuming an optimum service level, is ___ percent. A)100 B)67 C)50 D)33 E)5
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Quizplus · Accepted Answer

The approximate stockout risk, assuming an optimum service level, is 67 percent when excess cost is double the shortage cost.

In the Single-Period Model, If Excess Cost Is Double the Shortage