Which of the Following Statements Does Not Describe the Relationship

Multiple Choice

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) More backup stock is needed in the model stock plan if a retailer wants to increase product availability.
C) The quantity of backup stock is fixed by a retailer and is not influenced by product availability.
D) 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.
E) A very high level of product availability results in a prohibitively high inventory investment.