Holding high levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.
A)high; high
B)high; low
C)low; high
D)low; low

Question

Quizplus · Accepted Answer

Holding high levels of inventory increases the costs associated with storing and managing the inventory, leading to higher inventory carrying costs. However, it reduces the likelihood of running out of stock, thus lowering stockout costs.

Holding High Levels of Inventory Results in ___________ Inventory Carrying