As long as the expected marginal benefit of keeping a unit in inventory _______the_______ , the unit should be added to the inventory.

Question

Quizplus · Accepted Answer

The decision to add a unit to inventory should be based on whether the expected marginal benefit (or revenue generated from selling the unit later) exceeds the expected marginal cost (or the cost of holding the unit in inventory). If the marginal benefit is greater than the marginal cost, then it makes sense to add the unit to the inventory.

As Long as the Expected Marginal Benefit of Keeping a Unit