Which of the following generates pressure to increase inventories?
A) inventory holding costs
B) ordering costs
C) storage and handling costs
D) taxes and insurance

Question

Quizplus · Accepted Answer

Ordering costs are the costs incurred to place an order for inventory, such as the cost of preparing and processing purchase orders. When ordering costs are high, it creates pressure to increase inventory levels and reduce the frequency of orders, which can lead to higher inventory holding costs.

Which of the Following Generates Pressure to Increase Inventories