Given the demand for a company's inventoried items,the company typically experiences a trade-off between the ________________ and the _________________.

Question

Quizplus · Accepted Answer

The trade-off mentioned in the question is between holding costs and ordering costs. Holding costs refer to the cost of holding inventory in stock (such as storage, insurance, etc.), while ordering costs refer to the cost of placing an order (such as administrative expenses, transportation costs, etc.). Therefore, option D, holding costs and ordering costs, best fits the sentence.

Given the Demand for a Company's Inventoried Items,the Company Typically