The objectives of marketing, such as reducing lost sales, may conflict with a finance department objective of minimizing the investment in inventory.

Question

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Marketing objectives often focus on maximizing sales and customer satisfaction, which can lead to a desire for higher inventory levels to ensure product availability. In contrast, finance departments typically aim to minimize costs, including the investment in inventory, to improve cash flow and reduce holding costs. This difference in priorities can lead to conflicts between the two departments.

The Objectives of Marketing, Such as Reducing Lost Sales, May