Although carrying large inventories may minimize stock-out costs, it is likely to maximize which other type of costs?
A) processing
B) holding or storage
C) handling
D) shipping

Question

Quizplus · Accepted Answer

Carrying large inventories increases the holding or storage costs, such as rent, insurance, and obsolescence. Processing, handling, and shipping costs are not necessarily affected by inventory level.

Although Carrying Large Inventories May Minimize Stock-Out Costs, It Is