In an attempt to keep inventory fresh,a small retailer is trying to minimize amounts kept in inventory.What is a potential weakness of this practice?
A) an increase in inventory carrying costs
B) stockouts lead to lost sales
C) an increase in the expense of using the retail inventory valuation method
D) an increase in inventory shrinkage through pilferage

Question

Quizplus · Accepted Answer

By minimizing the amounts kept in inventory, there is a higher likelihood of stockouts occurring. This means that there may not be enough products available to meet customer demand, resulting in lost sales.

In an Attempt to Keep Inventory Fresh,a Small Retailer Is