The Costs That Result When a Company Runs Out of a Particular

question 2

Multiple Choice

The costs that result when a company runs out of a particular item for which there is a customer demand are ________.

• A) shrinkage costs
• B) shortage costs
• C) stockout costs
• D) EOQ estimation costs

---

Definitions:

Customer Relationship Management

A strategic approach that manages a company's interactions with current and prospective customers, typically involving the use of technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.

Lasting Relationships

Connections or associations between individuals or entities that are durable and persist over a long period.

Add Value

The process of enhancing a product or service before offering it to customers, making it more appealing or useful.

Value Chain Analysis

A strategic analysis method that views a firm as a series of processes and activities that transform inputs into valuable outputs.