Which of the following is a disadvantage of low inventory levels?

Question

Quizplus · Accepted Answer

All of these are disadvantages of low inventory levels. Low inventory levels mean smaller quantities of stock that can be purchased, leading to less bulk discount. Higher order costs stem from the fact that when the inventory level is low, the company must place more tiny orders. Low inventory levels would lead to purchase price inflation, implying that it would cost more per unit to acquire small quantities of stock.

Which of the Following Is a Disadvantage of Low Inventory