Which of the following statements does not describe the relationship between product availability and stock level?
A) The higher the product availability, the greater the amount of backup stock.
B) More backup stock is needed in the model stock plan if a retailer wants to increase product availability.
C) The quantity of backup stock is fixed by a retailer and is not influenced by product availability.
D) If the product availability gets too high, scarce financial resources will be wasted on needless inventory that could be more profitably invested in increasing variety or assortment.
E) A very high level of product availability results in a prohibitively high inventory investment.

Question

Quizplus · Accepted Answer

If the backup stock is too low, the retailer will lose sales and possibly customers as well when they find that the products they want are not available from the retailer.

Which of the Following Statements Does Not Describe the Relationship