Stockout costs:
A) are easy to assess in most organizations.
B) can vary depending on whether it is a seller's or a buyer's market.
C) are about equal to or less than the cost of carrying additional inventory.
D) do not include present and future lost contribution on lost sales and customer goodwill because these are difficult to quantify.
E) are higher when it is a seller's market.

Question

Quizplus · Accepted Answer

Stockout costs can vary depending on market conditions. In a seller's market, where demand exceeds supply, stockout costs are typically higher due to lost sales and potential damage to customer relationships.

Stockout Costs