Determine stock out cost, I need to determine stockout cost

Determine stock out cost

Reference no: EM1359546

I need to determine stockout cost for a problem but don't think I have enough information.

40 percent of stockouts will result in a back order with a cost of $5.00 per back order; 40 percent of the stockouts result in a lost sale and a profit of $50.00 per unit; and 20 percent of the stockouts result in a lost customer and with an estimated loss of $100.00.

Reference no: EM1359546

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