Whether the optimal level of product availability is high or low depends on where a particular company believes they can
A)minimize cost.
B)maximize revenue.
C)maximize profits.
D)maximize product availability.

Question

Quizplus · Accepted Answer

The optimal level of product availability should be set to maximize profits, which is the difference between revenue and cost. This means that a company should balance the cost of maintaining inventory levels and the potential lost revenue from stockouts to achieve the highest profitability. Setting product availability too high could result in excess inventory costs, while setting it too low could result in lost sales and reduced revenue. Therefore, maximizing profits is the best choice.

Whether the Optimal Level of Product Availability Is High or Low