In the context of aggregate planning options, which of the following costs are an implication of allowing stockouts
A) Inventory-carrying costs
B) Lost sales and customer loyalty costs
C) High labor costs and premiums
D) Separation costs

Question

Quizplus · Accepted Answer

Allowing stockouts may lead to lost sales and dissatisfied customers, which can result in a cost in terms of both lost revenue and customer loyalty. The other options are not necessarily associated with allowing stockouts.

In the Context of Aggregate Planning Options, Which of the Following