The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.

Name: The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.
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The inventory effect refers to the relationship between the cost of lost sales and inventory costs. As inventory costs increase, the cost of lost sales decreases, and vice versa. This inverse relationship is known as the inventory effect.

The Inverse Relationship That Exists Between the Cost of Lost