Which of the following statements is NOT a justification for carrying inventory?

Question

Quizplus · Accepted Answer

Carrying inventory does not promote purchasing and transportation cost increases. In fact, carrying too much inventory can increase these costs due to additional storage and handling fees. The other options are valid justifications for carrying inventory. A) Inventory can protect against contingencies such as disruptions in supply or distribution due to strikes, natural disasters, or political unrest. C) Having inventory on hand can lead to better customer service by allowing for timely order fulfillment and reducing stockouts. D) Inventory can serve as a buffer against fluctuations in supply and demand by allowing the company to adjust production or sales accordingly.

Which of the Following Statements Is NOT a Justification for Carrying