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Compute the expected total stockout cost for the year

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Problem 1: Compute the expected total stockout cost for the year based on the following: 12 orders per year, P0.40 stockout cost per unit, and stockout probability estimates of: Probability of stockout: 0.20; Stockout in Units: 50; Probability of stockout: 0.10 ; Stockout in Units: 100

Problem 2: Clerks A, B and C process 50%, 20%, and 30% of the sales order, respectively. The percentage of errors made in processing a sales order by clerks A, B and C are 2%, 5% and 10%, respectively. What is the probability that this invoice was processed by clerk C?

Reference no: EM132675087

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