Holding low 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 low levels of inventory leads to lower inventory carrying costs because there is less inventory to store, insure, and manage. However, it increases the risk of stockouts, leading to higher stockout costs due to potential lost sales and customer dissatisfaction.

Holding Low Levels of Inventory Results in ___________ Inventory Carrying