When a company works on controlling stockout frequency, the company is addressing which of the following attributes of customer service?
When a company works on controlling stockout frequency, the company is addressing which of the following attributes of customer service?
When a company works on controlling stockout frequency, the company is addressing the attribute of availability. Stockouts occur when items are not available for customers when they are needed, so focusing on reducing stockouts directly impacts the availability of products. Ensuring products are consistently available for customers is a key aspect of providing effective customer service.
the attribute for stockout frequency metric is Availablity refer exhibit 3-28
Stockouts deal with availability.
Service reliability addresses right product, right time, right place etc. Think perfect order fulfillment. So reducing stockouts controls issues in service reliability
Why not A?
Activity-based costing (ABC) is an approach to costing that directly reflects logistics performance.