Which of the following issues would be of greatest concern for a company choosing to reduce its finished goods inventory?
A) Long production changeover time
B) Customer service expectations
C) Product quality requirements
D) Product shelf life constraints

Question

Quizplus · Accepted Answer

Customer service expectations would be of greatest concern for a company choosing to reduce its finished goods inventory because maintaining adequate inventory levels ensures that customer orders can be promptly fulfilled. Therefore, reducing finished goods inventory could lead to longer lead times for customer orders, impacting customer satisfaction and potentially damaging the company's reputation.

Which of the Following Issues Would Be of Greatest Concern