One of the daily, delicate balancing acts that logistics managers have to perform involves the trade-off between inventory costs and the cost of stock-outs.

Question

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This statement is true. Logistics managers need to balance the cost of carrying inventory with the costs of stock-outs. Too much inventory can lead to high carrying costs, while too little inventory can result in stock-outs and lost sales. Finding the right balance involves managing demand forecasting, order quantities, lead times, and safety stock levels.

One of the Daily, Delicate Balancing Acts That Logistics Managers