Which of the following is classified as a retail activity in inventory management?

The classification of retail activities in inventory management involves functions that are directly related to the buying and selling of products. Pilferage, which refers to the theft of small quantities of goods, is indeed considered a retail activity because it impacts inventory levels and can affect the overall profitability of a retail operation. Retailers need to manage and mitigate pilferage to maintain effective inventory control and minimize losses associated with stolen merchandise.

The other choices represent various metrics and concepts related to inventory management, but they do not fall under the category of retail activities. The inventory turnover ratio measures how quickly inventory is sold and replaced, days of supply on hand calculates how long inventory will last based on current usage, and unfilled orders reflect demand exceeding available inventory. While these concepts are crucial for efficient inventory management, they are not direct retail activities unlike pilferage, which represents a tangible retail concern that directly affects sales and inventory management strategies.