A disruption in the production schedule due to a lack of materials is called a:
A) Cash-out.
B) Shortage cost.
C) Flexible cost.
D) Maturity hedging cost.
E) Compensating cost.

Question

Quizplus · Accepted Answer

A disruption in the production schedule due to a lack of materials leads to a shortage cost. This cost can include lost sales, backorders, and the cost of expediting shipments, among other consequences.

A Disruption in the Production Schedule Due to a Lack