Holding substantial amounts of finished goods for delivery any time that a customer demand is experienced can result in which negative consequence?
A) Lower product quality
B) More difficult marketing
C) High carrying cost
D) Stockouts

Question

Quizplus · Accepted Answer

Holding substantial amounts of finished goods for delivery any time that a customer demand is experienced can result in high carrying costs, which can negatively impact a company's profitability. This is because holding inventory requires significant resources such as space, handling, maintenance, and insurance, which all add up to a high cost. Additionally, if the product has a short shelf life or if customer demand suddenly drops, the company may end up with excess inventory that is difficult to sell and may lead to further losses.

Holding Substantial Amounts of Finished Goods for Delivery Any Time