Problems associated with stock-outs include:
A) Higher replenishment costs
B) Costly emergency procedures
C) A & B only
D) All of the above
E) Satisfied customer demands

Question

Quizplus · Accepted Answer

Stock-outs can result in higher replenishment costs due to rush or express shipping fees, and also require costly emergency procedures such as overtime pay for employees or expedited production processes. These consequences can be avoided by implementing effective inventory management strategies to minimize the occurrence of stock-outs. Satisfied customer demands do not apply to problems associated with stock-outs.

Problems Associated with Stock-Outs Include