If frequent, small shipments of purchased items cannot be arranged with suppliers, large inventory savings for these items cannot be realized.

Question

Quizplus · Accepted Answer

If frequent, small shipments are not possible, then the company would have to order larger quantities of inventory to meet their needs, which can lead to increased carrying costs and storage expenses. Therefore, they cannot realize the savings that come with having a smaller inventory.

If Frequent, Small Shipments of Purchased Items Cannot Be Arranged