The Critical Fractile (CF) ratio (where Co = Cost of over stock and Cu = Cost of under stock) is defined as:
A. Co / (Cu + Co).
B. Cu / (Cu + Co).
C. (Cu + Co) / Cu.
D. Cu / (Co – Cu).
Answer:B
The Critical Fractile (CF) ratio (where Co = Cost of over stock and Cu = Cost of under stock) is defined as:
A. Co / (Cu + Co). B. Cu / (Cu + Co). C. (Cu + Co) / Cu. D. Cu / (Co – Cu).