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Angela Wants to Sell Her Business

question 61

Multiple Choice

Angela wants to sell her business. Sadie has expressed an interest in purchasing it, but is worried about whether or not she will qualify a loan with the interest rates going up. Sadie is worried about a(n)


Definitions:

Stockout

A situation where inventory is exhausted, and a product is unavailable for sale or delivery, potentially leading to lost sales and customer dissatisfaction.

Cost of Understocking

The financial loss or missed opportunity cost incurred when inventory levels are too low to meet demand.

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, depreciation, and opportunity costs.

Replenishment Lead Time

Defines the period between placing an order for stock and its delivery, impacting inventory levels and the ability to meet customer demand.

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