________ cost increases at an accelerating rate as the customer service level approaches 100 percent.

Question

Quizplus · Accepted Answer

As the customer service level approaches 100 percent, the inventory costs increase due to the need for higher levels of safety stock to ensure that products are always in stock and available for customers. The cost of holding extra inventory increases exponentially as the service level approaches perfection.

________ Cost Increases at an Accelerating Rate as the Customer