Manufacturing's cost efficiency is not affected by inventory decisions.

Question

Quizplus · Accepted Answer

Inventory decisions have a direct impact on manufacturing's cost efficiency. Excess inventory can lead to higher storage costs, increased risk of obsolescence, and potential write-offs. On the other hand, running out of inventory can result in production delays or even lost sales. Therefore, finding the right balance in inventory management is crucial for cost efficiency in manufacturing.

Manufacturing's Cost Efficiency Is Not Affected by Inventory Decisions