Which right is primarily concerned with avoiding stock shortages?

Gain insight into CIPS Whole Life Asset Management with our comprehensive quiz. Hone your skills with multiple-choice questions and detailed explanations. Get prepared for your exam!

The right that is primarily concerned with avoiding stock shortages is the right quantity. This principle focuses on ensuring that the correct amount of stock is available to meet demand while minimizing excess inventory. Maintaining the right quantity helps organizations avoid stockouts, which can disrupt operations, lead to missed sales opportunities, and ultimately affect customer satisfaction.

In inventory management, the right quantity is critical because it balances supply with customer needs. If a business has too little stock (the wrong quantity), it cannot fulfill customer orders, resulting in potential loss of sales and damage to the company's reputation. Therefore, organizations strive to accurately forecast demand and optimize their stock levels to ensure that they have enough inventory on hand without overstocking, which ties up capital and resources.

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