Stock-outs will drive higher replenishment costs.

Name: Stock-outs will drive higher replenishment costs.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

When stock-outs occur, it means that the inventory level has reached zero or has fallen below a certain level, which increases the risk of lost sales and dissatisfied customers. Replenishing stock after a stock-out requires additional costs such as rush shipping, expedited production, or emergency purchases at higher prices. These costs add up and could drive higher replenishment costs.

Stock-Outs Will Drive Higher Replenishment Costs