Some high-volume products may have such high handling costs that they are less profitable and deserve less shelf space than low-volume products.

Question

Quizplus · Accepted Answer

This statement is true. Handling costs, such as restocking, replenishing, and transporting, can eat into a product's profits. High-volume products may require more handling and thus have lower profit margins than low-volume products that require less handling. Therefore, it is necessary to consider handling costs when determining the profitability and shelf space allocation of products.

Some High-Volume Products May Have Such High Handling Costs That