Asked by Fabiha Tahsin on Jun 17, 2024

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If quick response allows multiple orders in the season,

A) profits decrease and the overstock quantity decreases.
B) profits decrease and the overstock quantity increases.
C) profits increase and the overstock quantity decreases.
D) profits increase and the overstock quantity increases.

Overstock Quantity

An excessive amount of inventory that exceeds the demand, often leading to increased storage costs and potential waste.

Profits Increase

An upward movement in the net financial gains of a business, often resulting from increased revenue, reduced costs, or both.

Profits Decrease

The reduction in earnings, often due to increased costs, lower sales, or unfavorable market conditions.

  • Acquire knowledge on how immediate responsiveness influences stock amounts, economic gains, and surplus inventory within supply chain operations.
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Verified Answer

AA
Arinn ArnoldJun 24, 2024
Final Answer :
C
Explanation :
Quick response allows for better matching of supply with demand, leading to increased profits due to fewer markdowns and decreased overstock as inventory is more accurately aligned with actual sales.