Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.

Question

Quizplus · Accepted Answer

Inventory decisions can have a significant impact on physical distribution costs and on the level of customer service provided. For example, holding excess inventory can increase storage and handling costs, while stockouts can lead to backorders and dissatisfied customers. Optimizing inventory levels is essential for maintaining efficient physical distribution and meeting customer demand.

Inventory Decisions Seldom Have a Strong Impact on Physical Distribution