It is much wiser to carry too little inventory rather than too much because there are no costs associated with carrying too little inventory.

Question

Quizplus · Accepted Answer

Carrying too little inventory can result in stockouts, lost sales, and dissatisfied customers. This can lead to increased costs associated with expedited shipping, rush production, or lost customers. Therefore, it is important to find a balance between carrying enough inventory to meet demand while minimizing holding costs.

It Is Much Wiser to Carry Too Little Inventory Rather