L4M7 Exam Dumps | Which of the following would be an impact of low stock in the supply chain? * Warehouse space would all

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CIPS.L4M7.v2025-07-04.q121
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Question 3/121

Which of the following would be an impact of low stock in the supply chain?
* Warehouse space would all be full with excess stock
* There may be delays and higher costs to fulfill supply
* Stock may not be available at times of high demand
* Lead times would reduce and purchase costs would fall

A. 2 and 3 only

B. 1 and 3 only

C. 2 and 4 only

D. 1 and 4 only

Correct Answer: A

Low stock levels can lead to:
* Delays and higher fulfillment costs: When stock is insufficient, emergency orders and expedited shipping may be necessary, increasing costs.
* Stockouts during high demand: Insufficient inventory can lead to missed sales opportunities, negatively impacting customer satisfaction.
Whole-life asset management seeks to balance inventory levels to avoid stockouts while minimizing holding costs.

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