A company is deciding between two inventory management systems, System P and System Q, to optimize its supply chain. System P promises a 10% reduction in storage costs but requires a 5% increase in logistics staff. System Q promises a 15% reduction in stockouts but increases initial software licensing costs by $50,000. For each goal below, select the system that would be the better choice.
✓ Correct Answer: Option A
System P offers a 10% reduction in storage costs, directly contributing to short-term savings. System Q reduces stockouts by 15%, directly improving product availability and customer satisfaction. Therefore, P for Goal 1 and Q for Goal 2.