Which one of the following reasons creates a pressure for reducing inventories?
A) on- time delivery requests from customers
B) need for better labor or equipment utilization
C) high interest or opportunity cost
D) need for reduction in total payments to suppliers

Question

Quizplus · Accepted Answer

High interest or opportunity costs create a financial pressure to reduce inventories because holding large amounts of inventory ties up capital that could be used elsewhere, potentially yielding higher returns.

Which One of the Following Reasons Creates a Pressure for Reducing