For the same safety inventory, does an increase in lot size increase the fill rate but not the cycle service level?
Understand the Problem
The question explores the relationship between lot size, fill rate, and cycle service level in safety inventory management. It asks whether increasing the lot size improves fill rate but not cycle service level for a given safety inventory.
Answer
True.
For the same safety inventory, an increase in lot size does increase the fill rate but not the cycle service level. This statement is true.
Answer for screen readers
For the same safety inventory, an increase in lot size does increase the fill rate but not the cycle service level. This statement is true.
More Information
Fill rate is the fraction of customer demand that is met from readily available stock, while the cycle service level refers to the probability of not having a stockout during a cycle.
Tips
Understand the difference between fill rate and cycle service level to avoid confusion.
Sources
- Solved For the same safety inventory, an increase in lot | Chegg.com - chegg.com
- Chapter 12 Flashcards by Amy Horton | Brainscape - brainscape.com
- Both and increase as the safety inventory is increased afill rate cycle ... - discourse.rewild.org
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