Question

Steven managed an auto parts store in the 1990s. At that time, stock-outs—failureto have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely

A. canceled orders and shifted the business to competitors.
B. increased promotional outlays to overcome customer dissatisfaction.
C. used exclusive geographic territories to reduce supply chain inefficiencies.
D.stockpiled inventory, adding to the cost of providing auto parts.
E. returned to traditional distribution center logistics

Answer 1

D. stockpiled inventory, adding to the cost of providing auto parts.

Step-by-step explanation:

Stockpiling is the process of accumulating a large stock of materials, goods, or inventory items with in order to avoid stock-outs that result in losing customers to competitors.

In order to stockpiled inventory, appropriate provision is usually made in the budget in order to increase the cost of making inventory available at all time.

Therefore, to avoid this problem and keep his business customers, Steven most likely stockpiled inventory, adding to the cost of providing auto parts.