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Calculate the cost of the stockout under the following conditions: A vendor supplies 9,000 retail outlets. The vendor's order fill rate is 98%. Therefore, at
Calculate the cost of the stockout under the following conditions: A vendor supplies 9,000 retail outlets. The vendor's order fill rate is 98%. Therefore, at any given time, 180 stores are out of stock. On average, each store sells 6 units of an item that costs $9 each for $15 each week. Also, the retailer charges 50% of the lost sales dollars back to the supplier. a. What is the annual cost of the stockout in lost profits to the retailer? b. What is the annual cost of the stockout in lost sales dollars to the supplier
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