Type 1 (Probability of Not Stocking Out)

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Type 1 (Probability of Not Stocking Out)

Type 1 identifies the probability of no stockouts in a given risk period.

It is event-oriented: Does a stockout occur or not in a risk period?

For example, if there are 4 risk periods and the lead time demand is greater than the reorder point in three of them, the Type 1 Service value is:

(4 - 3) / 4 = 25%

Last modified: Wednesday May 15, 2024

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