Carrying insufficient quantities of inventory on hand:
A) can inadvertently lower a company's costs so much that its taxes become excessive.
B) can cause customers to go elsewhere to obtain the product.
C) has little effect on customer satisfaction.
D) will increase the costs of carrying inventory.

Question

Quizplus · Accepted Answer

Carrying insufficient quantities of inventory on hand can lead to stockouts, which can drive customers to competitors who have the product in stock, having a negative impact on customer satisfaction and potentially resulting in lost sales.

Carrying Insufficient Quantities of Inventory on Hand