ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stockouts is synonymous with surplus.
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TRUE
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FALSE
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -A deficit is essentially the opposite of a surplus.
Detailed explanation-2: -In simple terms, surplus inventory is excess stock. Some companies will hold excess inventory on purpose, as a sort of ‘back up’ supply in case demand is higher than expected. But, more often than not, excess inventory is the result of overstocking due to poor demand forecasting.
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