As the quantity held in inventory increases, the probability of selling less than that quantity increases.

Name: As the quantity held in inventory increases, the probability of selling less than that quantity increases.
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Quizplus · Accepted Answer

This is known as the inventory demand relationship or the negative relationship between inventory and sales. As the inventory level increases, the likelihood of not being able to sell all of it increases. This can lead to overstocking, waste, and potentially lower profits.

As the Quantity Held in Inventory Increases, the Probability of Selling