Which of the following is a disadvantage of excessive inventory?
A) It hides production and other problems.
B) It leads to higher inventory ordering cost.
C) It leads to lower average inventory.
D) It eliminates cycle stock.
E) It reduces the need to conduct cycle count.

Question

Quizplus · Accepted Answer

Excessive inventory can mask underlying issues in production and operations, as problems may not become apparent until inventory levels are reduced.

Which of the Following Is a Disadvantage of Excessive Inventory