Carrying too much inventory is always preferable to carrying too little.

Question

Quizplus · Accepted Answer

Carrying too much inventory can result in increased holding costs, obsolescence, and spoilage, which can ultimately lead to monetary losses. On the other hand, carrying too little inventory can lead to stockouts, which can result in lost sales, dissatisfied customers, and damage to the brand image. Therefore, it is always better to maintain an optimal level of inventory that balances the risks of both understocking and overstocking.

Carrying Too Much Inventory Is Always Preferable to Carrying Too