In order for quick response (QR)inventory planning to be effective,________.
A) inventory ordering costs need to be low
B) inventory holding costs need to be low
C) electronic data interchange must not be functioning
D) shipping costs must be reduced

Question

Quizplus · Accepted Answer

Inventory ordering costs need to be low for QR inventory planning to be effective because QR inventory planning relies on frequent, small orders to keep inventory levels low. If ordering costs are high, then it will be more expensive to place these frequent orders, which will reduce the effectiveness of QR inventory planning.

In Order for Quick Response (QR)inventory Planning to Be Effective,________