Frequent deliveries of small shipments can reduce inventory but also result in an increase in the transportation cost per unit.

Question

Quizplus · Accepted Answer

Frequent deliveries of small shipments mean that companies don't need to keep as much inventory on hand, which reduces storage costs and risks. However, the cost of transportation per unit tends to increase because the shipments are smaller and more frequent, leading to less efficient use of transportation resources.

Frequent Deliveries of Small Shipments Can Reduce Inventory but Also