Question

A company is benchmarking against a competitor. The company currently has an average PIIS of 87% on 531 SKUs. The competitor manages 687 SKUs and, on average, has 653 in stock. The company wants to elevate it's PIIS to match the competitor. So...a. The company should increase the SKUs it sales to the market by 5%b. The company should increase the size of its warehousec. The company should increase its average in-stock items by 43d. None of the above

Answer 1

Answer:

The company should increase its average in-stock items by 43

Explanation:

PIIS of competitior = In stock unit / Total SKU = 653 / 687 = 95%

Current PIIS of company is 87% on 531 SKUs

So,

in stock SKUs = PIIS * Total SKUs = 87% * 531 = 461.97

If it increases average in stock items by 43, in stock units will increase to 461.97 + 43 = 505

The new PIIS will be In stock unit/Total units = 505 / 531 = 95%, which will be same as competitor