Factors Affecting the Optimal Level of Product Availability Cost of overstocking the products Co Cost of understocking the products →Cu Possible scenarios Seasonal items with a single order in a season Demand during stockout is backlogged Demand during stockout is lost The company has to decide the size of the order SEIEE AU406 12-7+ - SEIEE AU406 12-7 Factors Affecting the Optimal Level of Product Availability  Cost of overstocking the products  Cost of understocking the products  Possible scenarios  Seasonal items with a single order in a season  Demand during stockout is backlogged  Demand during stockout is lost  The company has to decide the size of the order