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Entrepreneurship
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Inventory Planning and Reorder Decisions
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Entrepreneurship
ENT.115 Inventory Planning and Reorder Decisions
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A school store can add safety stock for only one item this month. Item X has high contribution margin, no substitute, and frequent event demand spikes. Item Y has low margin, many substitutes, and stable demand. Which decision is best?
A
Prioritize safety stock for Item X
B
Prioritize Item Y
C
Remove safety stock from both items
D
Split safety stock equally without considering margin or substitution
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