In general,as inventory is added in steady increments,______.
A)a firm's fill rate decreases but at a decreasing rate
B)a firm's fill rate increases but at an increasing rate
C)a firm's fill rate decreases but at an increasing rate
D)a firm's fill rate increases but at a decreasing rate

Question

Quizplus · Accepted Answer

As inventory is added in steady increments, a firm's fill rate will initially increase but at a decreasing rate. This is because as inventory levels increase, there may still be some unmet demand, but the incremental increase in fill rate will be less as the inventory levels get closer to meeting all demand. Therefore, the correct answer is D - a firm's fill rate increases but at a decreasing rate.

In General,as Inventory Is Added in Steady Increments,______