Which of the following would be a strategy to decrease the margin lost in a stockout?
A) Arranging for backup sourcing
B) Discarding the unused material
C) Selling unsold product to an outlet store
D) Reduce the level of cycle inventory

Question

Quizplus · Accepted Answer

Arranging for backup sourcing means having an alternate supplier or source of inventory to quickly replenish the stock, which can prevent stockouts and reduce the margin lost due to lost sales. Discarding the unused material, selling unsold product to an outlet store, or reducing the level of cycle inventory will not address the issue of stockouts or decrease the margin lost.

Which of the Following Would Be a Strategy to Decrease