Stockout Costs

Multiple Choice

Stockout costs:

A) are easy to assess in most organizations.
B) can vary depending on whether it is a seller's or a buyer's market.
C) are about equal to or less than the cost of carrying additional inventory.
D) do not include present and future lost contribution on lost sales and customer goodwill because these are difficult to quantify.
E) are higher when it is a seller's market.