Answer the following question(s)using the information below:
The following information has been gathered for Product A:

-What are the major relevant costs in maintaining safety stock?
A)carrying costs and purchasing costs
B)ordering costs and purchasing costs
C)ordering costs and stockout costs
D)stockout costs and carrying costs
E)stockout costs and purchasing costs

Question

Answer the following question(s)using the information below:
The following information has been gathered for Product A:
 
-What are the major relevant costs in maintaining safety stock?
A)carrying costs and purchasing costs 
B)ordering costs and purchasing costs 
C)ordering costs and stockout costs 
D)stockout costs and carrying costs 
E)stockout costs and purchasing costs

Quizplus · Accepted Answer

The given information does not include any numerical values or additional context, so it is difficult to determine the specific costs involved. However, in general, the major relevant costs in maintaining safety stock are carrying costs (such as storage and handling expenses) and stockout costs (such as lost sales and customer dissatisfaction). Therefore, option D is the best choice as it includes both of these costs as relevant factors.

Answer the Following Question(s)using the Information Below