Question: Calculation (show your work): Estimate the expected stockout costs per incident under the following assumptions to customer reactions to any given stockout:| - There is
Calculation (show your work): Estimate the expected stockout costs per incident under the following assumptions to customer reactions to any given stockout:| - There is a 10% chance the customer will wait until the product is available and otherwise not change its behavior. - There is a 10% chance the customer will backorder the product. We estimate this would cost the firm $50. There is a 60% chance the customer substitutes its purchase this one time by going to a different seller. We estimate this would cost the firm $30. - There is a 20% chance the customer switches permanently to a new seller. We estimate this would cost the firm $2,000
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