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Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:
Correct Answer: C
* Context: Companies often prioritize service levels based on the profitability of their products. * Options Breakdown: * A. Wider variety: While a wider variety can attract more customers, it does not directly influence the prioritization of service levels. * B. Shorter lead time: Short lead times are desirable but not the primary reason for maintaining higher service levels. * C. Higher profit margins: Products with higher profit margins contribute more significantly to the company's bottom line, justifying higher service levels to ensure customer satisfaction and * repeat business. * D. Lower sales volumes: Lower sales volumes typically do not warrant higher service levels due to their limited impact on overall profitability. * Correct Answer Justification: Companies aim to maintain higher service levels for high-margin products to maximize profitability and customer retention. References: * Supply chain management textbooks * Industry practices on service level prioritization