Assuming no change in demand, as the quantity of inventory delivered in each shipment is reduced and the frequency of delivery is increased:
A) The average level of inventory increases.
B) The cost of ordering inventory is decreased.
C) The productivity of the inventory drops.
D) The financial return for the inventory investment increases.

Question

Quizplus · Accepted Answer

Increasing delivery frequency with smaller quantities reduces holding costs and increases inventory turnover, leading to a better financial return on inventory investment.

Assuming No Change in Demand, as the Quantity of Inventory