Carrying Too Little Inventory Can Lead to All of the Following

question 75

Multiple Choice

Carrying too little inventory can lead to all of the following except?

• A) Stockouts
• B) Plant shutdowns
• C) Excess inventory carrying costs
• D) Dissatisfied customers

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Definitions:

Duty of Compensation

An obligation to provide payment or restitution for loss, damage, or injury.

Incorporate

The process of legally forming a corporation under state law, effectively creating a distinct legal entity separate from its owners.

Agency by Agreement

A relationship formed through an express or implied contract where one party (the agent) is authorized to act on behalf of another (the principal).

Orally Agrees

To give consent or reach an agreement on something using spoken words rather than written.