A clothing retailer has been striving to reduce the costs of its inventory, but many of its customers are switching to competitors because they do not want to wait for the retailer to order the Items.This retailer is experiencing _____.
A) customer satisfaction
B) stock-out costs
C) production concerns
D) holding costs
E) just-in-time inventory

Question

Quizplus · Accepted Answer

The retailer is experiencing stock-out costs, which occur when customers are unable to purchase the items they want because they are out of stock. In this case, the retailer's efforts to reduce inventory costs have resulted in a shortage of stock, causing customers to turn to competitors who can provide faster service.

A Clothing Retailer Has Been Striving to Reduce the Costs