Inventory is costly, so the best policy is to carry little to no inventory.

Question

Quizplus · Accepted Answer

Carrying little to no inventory might seem like the best policy for reducing costs, but it can lead to stockouts, lost sales, and dissatisfied customers. A balance needs to be struck between holding too much inventory (which ties up cash and takes up space) and holding too little (which can negatively impact customer satisfaction and ultimately, sales).

Inventory Is Costly, So the Best Policy Is to Carry