Question

MAY 13,2019 tion 2 (15 points, 1 points for each) Questi , Find the type of service level adopted in Q. R model and the corresponding target value fm respectively a. Type I, b. Type II, c. Type 111, d. 85%, e. 93%, f. 98% g. 94% Qultiple Choice. Fill in the blanks with appropriate answer identified from the multiple otio lFiolowing descriptions and fill them into the column of Type and "Target Value value from Description Type The company aims that the stock-out can only happen in 7% of the cycles The target service level is that there is no stock-out in 85% of the cycles. Cl The company hopes that the proportion of the cycles without stock-out is 98% The company hopes that the 85% of the demand can be met from its stock without backordering The company hopes that at most 6% of the demand could be satisfied with backordering D 9

Answer 1

Solution

There are 3 types of service levels in order to measure the inventory replenishment policies.

Type I - Here the performance is measured based on the event occurred i.e., it measures the probability of all customer orders received during the particular time frame that will be delivered without any delay

Type II - It indicates the proportion of total demand that will be delivered without any delay

Type III - It is a combination of the above 2 criteria.It measures the amount of back orders and the waiting times of demands back ordered.

Description	Type	Target Value
The company aims that the stock -out can only happen in 7 % of the cycles	a.	e.
The target service level is that there is no stock-out in 85% of the cycles	a.	d.
Company hopes that the proportion of the cycles without stock-out is 98%	a.	f.
Company hopes that 85% of the demand can be met from it's stock without back ordering	b.	d.
Company hopes that at most 6% of the demand could be satisfied with back ordering	b.	g.

Please comment in case you have any additional queries.Please give a "Thumbs Up" rating for the same !!