Which of the Following Statements Does NOT Describe the Relationship

question 55

Multiple Choice

Which of the following statements does NOT describe the relationship between product availability and stock level?

• A)The higher the product availability,the greater the amount of backup stock.
• B)The higher service level that a retailer tries to achieve,then the greater the amount of buffer stock to avoid stockouts on a particular SKU.
• C)If product availability is high,the retailer will increase inventory turnover.
• D)If the product availability sets too high,scarce financial resources will be wasted on needless inventory that could be more profitably invested in more variety or assortment.
• E)A very high level of product availability results in a prohibitively high inventory investment.

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Definitions:

Balance Sheet

A document that outlines a firm's assets, liabilities, and equity of stockholders on a given date, reflecting its financial status.

Market Values

The price at which an asset would trade in a competitive auction setting.