For 10 percent of the products in a category, a firm fails to satisfy

sputavanomr

sputavanomr

Answered question

2021-11-14

For 10 percent of the products in a category, a firm fails to satisfy all demand during the month. What is its in-stock probability?

Answer & Explanation

Nicole Keller

Nicole Keller

Beginner2021-11-15Added 14 answers

Step 1
Given: For 10 percent of the products in a category, a firm fails to satisfy all demand during the month.
Therefore, stockout probability: 10%=0.1
In stock probability+Stockout probability=1
Step 2
In-Stock probability is given by the formula:
In stock probability=1Stockout probability
=10.1
=0.9
=90%
Thus, the in-stock probability is 90%.

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