Ramiro,the owner of a supermarket,decides to keep relatively high levels of inventory even though it is expensive.Ramiro most likely thinks that the cost of _____ is greater than the benefits of increasing his turnover rate.
A) collaterals
B) portfolios
C) stockouts
D) asset management systems
E) floor space

Question

Quizplus · Accepted Answer

Choosing to keep high levels of inventory can help reduce or eliminate stockouts, which is when a business runs out of a particular product and cannot fulfill customer orders. If Ramiro believes that the cost of losing customers due to stockouts is greater than the cost of keeping excess inventory, then he would choose to keep higher levels of inventory.

Ramiro,the Owner of a Supermarket,decides to Keep Relatively High Levels