What service level results in zero safety stock in reorder point calculations?
A) 0%
B) 33%
C) 50%
D) 80%

Name: What service level results in zero safety stock in reorder point calculations? A) 0% B) 33% C) 50% D) 80%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A service level of 50% results in zero safety stock in reorder point calculations because it means that there is a 50% chance of running out of stock before the next order arrives. This means that there is no need for any safety stock to buffer against the risk of stockouts.

What Service Level Results in Zero Safety Stock in Reorder