Multiple Choice
A company recently lowered its service performance from 99% product availability to 97% product availability.The change saved the company exactly $1 million per year in inventory carrying cost.Senior management now wants to lower the service level to 95% from 97%.Such a further change is likely to save:
A) less than $1 million
B) about another $1 million
C) more than $1 million
Correct Answer:
Verified
Correct Answer:
Verified
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