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What is cost of not carrying sufficient inventory known as?

(a)Carrying Cost (b) Holding Cost (c) Total Cost (d) Stock-out Cost

 

Inventory Management
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Question added by ABDUS SAKUR TALUKDER , Finance Manager , EMCOR Facilities Services LLC
Date Posted: 2016/02/25
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Vaseem Ahamad
by Vaseem Ahamad , Associate Director Operations , Perfetti Van Melle

The option d is correct. It is called stock out cost . It is also a loss of opportunity to sale.

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