Asked by Shilpa Heald on Jun 19, 2024
Verified
If demand is not uniform and constant, then stockout risks can be controlled by all of the following except
A) increasing the EOQ.
B) placing an extra order.
C) raising the selling price to reduce demand.
D) adding safety stock.
E) reducing the reorder point.
Stockout Risks
The potential for inventory shortages that can result in lost sales, customer dissatisfaction, and negative impacts on a business's reputation and income.
EOQ
Economic Order Quantity, a formula used in inventory management to determine the optimal order size that minimizes total inventory costs.
Safety Stock
Additional inventory kept in reserve to protect against stockouts due to variability in demand or supply.
- Appreciate the importance of demand variability in inventory management and methods to manage it.
Verified Answer
Learning Objectives
- Appreciate the importance of demand variability in inventory management and methods to manage it.
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