In inventory models,high holding costs tend to favor low inventory Levels and frequent replenishment.

Name: In inventory models,high holding costs tend to favor low inventory Levels and frequent replenishment.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

High holding costs, such as storage, insurance, and obsolescence, can make it expensive to hold inventory for long periods of time. Therefore, it is more cost-effective to maintain low inventory levels and replenish frequently to avoid the accumulation of holding costs.

In Inventory Models,high Holding Costs Tend to Favor Low Inventory