Which of the following statements does not describe the relationship between product availability and stock level?

A. The quantity of backup stock is fixed by a retailer and is not influenced by product availability.
B. More backup stock is needed in the model stock plan if a retailer wants to increase product availability.
C. The higher the product availability, the greater the amount of backup stock.
D. A very high level of product availability results in a prohibitively high inventory investment.
E. If the product availability gets too high, scarce financial resources will be wasted on needless inventory that could be more profitably invested in increasing variety or assortment.


Answer: A

Business

You might also like to view...

Commissions and referral fees are allowed to audit firms as long as the audit client is informed of the fees

a. True b. False Indicate whether the statement is true or false

Business

Exploratory research is suitable for generating alternative courses of action and research questions

Indicate whether the statement is true or false

Business

Each phase of the marketing research process is important. If in the first phase of the process the problem is identified, what is done after that but before data is collected?

A) Determine the solution to the problem, identify relevant information sources and evaluate data collection methods B) Determine what information is needed, identify relevant information sources, and evaluate data collection methods C) Determine the solution to the problem, determine what information is needed, and identify relevant information sources. D) Determine what information is needed, evaluate data collection methods, and analyze the data

Business

Which of the following is true of service marketers?

A) They can always predict the consistency of service quality. B) They can typically offer customers a free trial of the service. C) They must identify ways of illustrating the benefits their service will provide. D) They typically market a service the same way a product would be marketed. E) They have no way to quantitatively measure service quality.

Business