Which of the following is a disadvantage of carrying too much inventory?
A) it creates an unnecessary waste of scarce resources.
B) it leads to higher annual inventory ordering costs.
C) it leads to lower average finished goods inventories.
D) it increases the need to purchase items.
E) it reduces the need to conduct cycle counts.

Question

Quizplus · Accepted Answer

Carrying too much inventory creates a waste of scarce resources as it ties up valuable capital that could be used for other purposes like investing in research and development, marketing or expanding the business.

Which of the Following Is a Disadvantage of Carrying Too