Reference no: EM13221386

Suppose that Joe, and APICS certified analyst, informs that he has heard about a new form that in the event of a stock? out, guarantees to provide overnight as many additional units as needed for a premium of $10/unit. Joe also believes that providing a $10 discount on the purchase (in case of a need for overnight delivery) will assure that no customers are lost.

(c) Under this scenario, how many units should be ordered?
(d) What is the probability of stock?out under this scenario?
(e) Should Flextora Inc implement the policy proposed by Joe?