In a single-period model, if shortage and excess costs are equal, then the optimum service level is:
A)0
B).33
C).50
D).67
E)none of these

Name: In a single-period model, if shortage and excess costs are equal, then the optimum service level is: A)0 B).33 C).50 D).67 E)none of these
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Quizplus · Accepted Answer

When shortage and excess costs are equal, the optimum service level in a single-period model is 0.50, meaning a 50% chance of meeting demand.

In a Single-Period Model, If Shortage and Excess Costs Are