The key to managing inventory is to balance the costs and benefits of holding larger inventories with the costs and benefits of holding less.

Question

Quizplus · Accepted Answer

This statement is true. It is crucial to find the optimal level of inventory that will minimize costs while still meeting customer demand. Holding too much inventory incurs storage and carrying costs, while holding too little inventory can result in stockouts and lost sales.

The Key to Managing Inventory Is to Balance the Costs