Which of these conditions is likely to cause a decrease in the probability of a stockout?
A)higher lead time variance
B)lower lead time
C)higher demand level variance
D)lower service level

Question

Quizplus · Accepted Answer

Lower lead time means products are received faster, reducing the chance of a stockout. Higher lead time variance increases the uncertainty in lead time, which can lead to stockouts. Higher demand level variance and lower service level both increase the risk of stockouts.

Which of These Conditions Is Likely to Cause a Decrease