All else the same, ________ costs are greatest when the ﬁrm holds a small quantity of inventory, and ___________ costs are greatest when there is a large quantity of inventory on hand.

Question

Quizplus · Accepted Answer

Restocking costs are high when inventory is low because frequent orders are needed, while carrying costs are high when inventory is large due to storage and maintenance expenses.

All Else the Same, ________ Costs Are Greatest When the ﬁRm