A Firm Has Increased Finished-Goods Inventories for Several Products to Compensate

A firm has increased finished-goods inventories for several products to compensate for increased variability in demand. The firm analyzed shipment data and determined that the variability was due to a few customers placing large orders for single shipments to obtain discounts. Which of the following actions is the firm most likely to take to maintain sales and reduce variability in demand?

A) Reducing discounts for large orders
B) Encouraging high-volume customers to place blanket orders
C) Implementing extrinsic forecasting methods
D) Increasing the level of safety stock on high-volume products

Correct Answer:

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