An example of Double Marginalization in supply chains is

Select one:

a. A distributor keeps low stocks to avoid having left-over inventory. The retailer has a product that has unexpected demand spikes and needs buffer stock available at the distributor so as not to lose sales.

b. A manufacturer needs high machine utilization and steady loading to keep costs down. The supplier delivers according to the manufacturers production schedule.

c. The customer wants high product availability. The retailer holds extra inventory of the product to meet the availability targets.

d. A distribution center for 80 retail outlets is required to keep enough stock to meet 95% of the demand. The retailers place their orders well in advance and do not cancel their orders.