Question : Case Study:
XYZ Electronics struggles to maintain optimal inventory levels, resulting in stockouts and excess inventory at various locations. What distribution challenge does XYZ Electronics face?
Option 1: Channel Conflict
Option 2: Reverse Logistics
Option 3: Inventory Management
Option 4: Logistical Constraints
Correct Answer: Inventory Management
Solution : The correct answer is (c) Inventory Management.
Inventory management involves the processes and systems used to oversee and control the ordering, storage, and use of materials, components, and finished products. In this case, XYZ Electronics is experiencing challenges in effectively managing their inventory levels, leading to stockouts (insufficient inventory) and excess inventory (overstocking). These challenges can have a significant impact on the distribution process, affecting product availability, customer satisfaction, and operational efficiency. Implementing effective inventory management practices is crucial for ensuring that inventory levels are optimized to meet customer demand while minimizing carrying costs and stockouts.
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