A reduction of inventories will save money but may increase the need for costly emergency shipments.This is an example of the ________.

Question

Quizplus · Accepted Answer

The trade-off concept refers to making a decision that involves giving up one thing in return for gaining another. In this case, reducing inventories is giving up the potential for having excess inventory costs, but it may result in a greater need for emergency shipments, which can be costly. Therefore, this is an example of a trade-off concept. The other options (B, C, D, E) are unrelated to this scenario.

A Reduction of Inventories Will Save Money but May Increase