What is stockout risk and how can it be mitigated?

• A. The risk of running out of parts; mitigated by better demand forecasting, supplier safety stocks, and reorder points.
• B. The risk of overstocking inventory; mitigated by reducing supplier visits.
• C. The risk of equipment downtime; mitigated by preventive maintenance programs.
• D. The risk of noncompliance with safety regulations; mitigated by audits.

Answer: (A)