Holding costs have an inverse relationship with ______.
A)ordering costs
B)dismantling costs
C)costs of logistics
D)costs of warehousing

Question

Quizplus · Accepted Answer

Holding costs are the costs associated with storing and maintaining inventory, and they have an inverse relationship with ordering costs. Ordering costs are the costs associated with placing and receiving orders for inventory, so as ordering costs decrease, holding costs increase and vice versa. Dismantling costs, costs of logistics, and costs of warehousing are not directly related to holding costs.

Holding Costs Have an Inverse Relationship with ______