The result of an inventory stockout usually results in
A) an increase in inventory costs.
B) an increase in lost sales.
C) an increase in net profit.
D) an increase in loyal customers.
E) a decrease in prices.

Question

Quizplus · Accepted Answer

An inventory stockout means that the desired item is not available for sale or delivery. This inevitably leads to lost sales as customers will seek alternatives or go to competitors. This loss of revenue directly affects the business's profitability. It may also lead to customer dissatisfaction, and they may choose to shop elsewhere in the future.

The Result of an Inventory Stockout Usually Results in