A retailer places an order for the new Bagpipe 2018™ from the supplier and takes note of the demand pattern.They use this knowledge of the demand to place a second order of Bagpipe 2018 from the supplier.This results in
A)a larger total order placed than when they could order only once per bagpipe season.
B)the same product availability at a lower level of inventory than when they could order only once per bagpipe season.
C)a slightly larger average overstock to be disposed of at the end of bagpipe season than when they could order only once.
D)a lower profit than when they could order only once during bagpipe season.

Question

Quizplus · Accepted Answer

By placing a second order based on observed demand, the retailer can better match supply with actual demand, reducing the need for excess inventory while maintaining product availability.

A Retailer Places an Order for the New Bagpipe 2018™