Since sales and the arrival of merchandise from vendors can't be predicted with perfect accuracy, retailers have to carry
A) backup stock.
B) basic merchandise.
C) perpetual inventory.
D) cycle stock.
E) base stock.

Question

Quizplus · Accepted Answer

Because sales of a SKU and receipts of orders from the vendor cannot be predicted with perfect accuracy, the retailer has to carry backup stock as a cushion so it doesn't run out of merchandise before the next order arrives.

Since Sales and the Arrival of Merchandise from Vendors Can't