Snyder Industries uses 100,000 widgets each year. If Snyder decides to place more orders each year, ordering fewer widgets each time, Snyder will be carrying _____ inventory on average and the risk of running out of inventory will _____.
A) less; rise
B) less; fall
C) more; fall
D) more; rise

Question

Quizplus · Accepted Answer

By placing more orders with fewer widgets each time, Snyder will reduce the average inventory level, but the risk of running out of inventory increases due to more frequent ordering and potential delays.

Snyder Industries Uses 100,000 Widgets Each Year