All of the following statements concerning shortage costs are true Except: Shortage costs include loss of goodwill, loss of a sale, loss of a customer, loss of profits, and late penalties Shortage costs are difficult or impossible to measure with any accuracy High shortage costs favor small inventories It is the cost of having no items in the inventory when it is needed by customers

The principal goal of inventory management systems is to balance the costs of ordering, shipping, and receiving goods with the cost of carrying those goods, while simultaneously meeting the firm's policy with respect to avoiding running short of stock and disrupting production schedules.  True  False

Restaurant Depot is a wholesale/supplier for the restaurants and hospitality businesses. It sells wide variety of food items and offering price reductions conditional on purchase of large quantities or multiple items. Restaurant Depot is said to offer ________ Temporary price cuts Volume discounts Premiums Rebates

An electronic store uses continuous review policy to manage the inventory of its high selling monitor model. The monitor has the following characteristics. The annual demand for the monitor is (4000 *2) units per week. The monitors are bought from an offshore supplier at a unit price of 7000 AED per unit and each order costs 80000 AED. The holding cost of laptops is 25% of the value of the product.   What would be the average time between orders (in weeks)? What would be the average inventory level? The electronic store is considering a local supplier. The ordering cost of the new supplier is 65000 AED however the unit price of the monitor is 9000 AED. Should the electronic store change its supplier