True or false: A stock-out is when demand for a good cannot be fulfilled from inventory.
  1. True
  2. False
Explanation
Answer: True. A stock-out is when demand for a good cannot be fulfilled from inventory.

Key Takeaway: Tightening inventory is good way to save companies money. However, if it is too tight, the product will frequently be out of stock. This will cause customer frustration, erode market share and decrease brand loyalty.
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