Stockouts are very costly for a medical device company.The logistics manager has decided to hold more inventory to reduce stockouts.This is an example of:

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The logistics manager's decision to hold more inventory is a trade-off between the cost of holding that inventory and the cost of stockouts, which is a cost-to-service trade-off. A Market consolidation strategy is a growth strategy where companies merge with other firms in the same market to increase market share. Value density refers to the value of a product relative to its weight and size, and is not relevant in this scenario.

Stockouts Are Very Costly for a Medical Device Company