Geoff strolled into his local big box retailer in search of sunflower seeds for the flock of cardinals that graced his property during the cold winter.Much to his (and the cardinals')dismay,the shelf where the 50 pound bags of sunflower seeds were kept was bare.He pirouetted and left the store in disgust,empty-handed and fearing the wrath of an angry flock of cardinals when he returned home.This sad scenario illustrates
A)safety inventory.
B)cycle inventory.
C)a markdown.
D)a lost sale.

Question

Quizplus · Accepted Answer

The scenario is describing a lost sale since the customer left the store empty-handed due to the product being out of stock. There was no sale to be made, and the customer may have to look elsewhere or choose an alternative product. A safety inventory is kept to ensure that there is always stock available to match customer demand, while cycle inventory represents the amount of stock needed to meet average demand during a specific time period. A markdown would occur if the store reduced the price of sunflower seeds after they were not selling, but there is no indication of this in the scenario.

Geoff Strolled into His Local Big Box Retailer in Search