Question $1$

Please match the following terms with their respective definitions.

Prompts

Fill rate

Reorder point

Type $1$ service level

Backorder cost

Answers

Select match

The proportion of demand $($in units$)$ filled from on$-$hand inventory.

The proportion of cycles without any stockout occurrences.

The cost of stocking out by one unit, assuming that the customer will ultimately complete the purchase when the product is in stock again.

Inventory level at which replenishment orders should be placed.