An inventory management strategy should work towards:
A)increasing order sizes
B)decreasing order sizes
C)increasing safety stocks
D)increasing demand
E)None of the above

Question

An inventory management strategy should work towards:
A)increasing order sizes 
B)decreasing order sizes 
C)increasing safety stocks 
D)increasing demand 
E)None of the above

Quizplus · Accepted Answer

Decreasing order sizes can help to reduce holding costs as inventory levels are kept low, while still ensuring that enough stock is ordered to fulfill demand. Increasing order sizes and safety stocks can lead to excess inventory and higher holding costs. Increasing demand may not be feasible or within the control of the inventory management strategy. Therefore, option B is the best choice as it aligns with the goal of efficient inventory management.

An Inventory Management Strategy Should Work Towards