Which of the following is not a likely consequence of investments made to improve quality?
A) Reduced inventory turnover.
B) Lower sales returns and sales allowances.
C) Lower holdings of inventory.
D) Faster throughput time.
E) Reduced field-service costs.

Question

Quizplus · Accepted Answer

Investments made to improve quality usually lead to reduced inventory holding costs, higher throughput time, lower sales returns and allowances, and reduced field-service costs. However, it is unlikely that investments in quality would result in reduced inventory turnover, as improved quality typically leads to increased customer satisfaction, which in turn drives demand and increases inventory turnover.

Which of the Following Is Not a Likely Consequence of Investments