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)The higher service level that a retailer tries to achieve,then the greater the amount of buffer stock to avoid stockouts on a particular SKU.
C)If product availability is high,the retailer will increase inventory turnover.
D)If the product availability sets too high,scarce financial resources will be wasted on needless inventory that could be more profitably invested in more variety or assortment.
E)A very high level of product availability results in a prohibitively high inventory investment.

Question

Quizplus · Accepted Answer

If product availability is high (and thus the buffer stock is high),inventory turnover will be reduced because of slow moving excessive inventory.

Which of the Following Statements Does NOT Describe the Relationship