A company has prioritized A, B, and C, filling orders in that sequence. What are the impact to customer service levels for customers B and C?
A company has prioritized A, B, and C, filling orders in that sequence. What are the impact to customer service levels for customers B and C?
Customer C has a higher service level. By examining the stock and order quantities, it is clear that Customer A's orders are prioritized and will be filled first. For Item 339, Customer A orders 3 units leaving 8 units in stock, which is sufficient to fulfill Customer B's order of 6 units, and 2 units are left for Customer C's order which requires only 3 units, resulting in an unfulfilled order for Customer C. For Item 703, Customer A orders 6 units leaving 3 units in stock. Customer B will get 2 units and Customer C can receive their full order of 5 units. For Item 173, Customer A orders 5 units leaving no stock for Customer B or C. Therefore, Customer C has a higher service level as they will get some quantity of their orders fulfilled, while Customer B misses out entirely on one item.
Correct Answer is B as per the stock available and A customer is high priority and then B and last C hence the SL will be higher of B than C
Customer B will have higher service level because by the time A is fulfilled, order will be stock out and that will increase the service level of B without A fully fulfilled yet.
Which is right, A or B. Explain how.
Why is it B the correct answer and not A? Can anyone explain to me please? I see everywhere the correct answer A..thank you