QSO 322 Module Six Comprehension Questions
Answering the review questions below will assist you in assessing your understanding of the concepts covered in Module Six. Answer the questions as completely as possible.
Prompt: Use your textbook to answer the questions below.
Guidelines for Submission: Your answers must be submitted in a Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Include the question with your answer immediately following. Your Microsoft Word document should include an APA-formatted reference page for your textbook and any outside resources.
1. Discuss the relationship between service level, uncertainty, safety stock, and order quantity. How can trade-offs between these elements be made? (Ch. 7)
2. What is the difference between the probability of a stock-out and the magnitude of a stock-out? (Ch. 7)
3. Customer-based inventory management strategies allow the use of different availability levels for specific customers. Discuss the rationale for such a strategy. Are such strategies discriminatory? Justify your position. (Ch. 7)
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