PPGG wants to find out stockout costs for a common chemical in US…
Question Answered step-by-step PPGG wants to find out stockout costs for a common chemical in US… PPGG wants to find out stockout costs for a common chemical in US market. If stockout occurs, the consequences are either a back order, a lost sale or a lost customer.A quick study by Phillip, a recent NKU-SCM graduate, reveals that50% of all stockouts result in a back order, and a back order requires the seller to spend an additional $108;35% result in a lost sale for the order, and this loss equals $1500 in lost profit; and15% result in a lost customer, or a loss of $12,000.Calculate the total estimated cost per stockout (SHOW YOUR WORK). Engineering & Technology Industrial Engineering Supply Chain Management MGT 410 Share QuestionEmailCopy link Comments (0)
