Extra Inventory That Is Used to Avoid Stockouts Is Known

question 104

Multiple Choice

Extra inventory that is used to avoid stockouts is known as

• A)planned shortages.
• B)quantity discounts.
• C)safety stock.
• D)service level.
• E)ABC analysis.

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Definitions:

Allocation

The process of distributing resources or tasks among people or groups based on a specific criteria.

Efficient Industries

Industries that achieve maximum productivity with minimum wasted effort or expense.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient global production and trade.

Consumer Market

A marketplace for goods and services that are purchased for personal, family, or household use.