The downsides of safety stock include the increased costs of carrying that inventory such as the investment in the products, taxes and insurance, and storage space.

Name: The downsides of safety stock include the increased costs of carrying that inventory such as the investment in the products, taxes and insurance, and storage space.
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Question

Quizplus · Accepted Answer

Safety stock requires additional investment in inventory, which increases carrying costs including taxes, insurance, and storage expenses.

The Downsides of Safety Stock Include the Increased Costs of Carrying