1. Business
  2. Operations Management
  3. estimate the average lossstockout cost for the follow example explain...

Question: estimate the average lossstockout cost for the follow example explain...

Question details

Estimate the average loss/stockout cost for the follow example. Explain your work.

Alternatives

Loss

Probability

Average Cost

1. Brand-loyal customer

$0.00

0.10

2. Switches and comes back

$37.00

0.65

3. Lost customer

$1,200.00

0.25

Average cost of a stockout

1

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution