Retailer is considering two possible definitions of in-stock

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Retailer is considering two possible definitions of “in-stock”: (I) a product is in-stock if it has at least one unit on-hand at the end of the day; (II) a product is in-stock if it has satisfied all demand during a day. For a given order upto level, which definition yields the higher in-stock probability?

Reference no: EM131646781

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