Which one of the following reasons creates a pressure for reducing inventories?
A) high interest or opportunity cost
B) on-time delivery requests from customers
C) need for better labor or equipment utilization
D) need for reduction in total payments to suppliers

Question

Quizplus · Accepted Answer

High interest or opportunity cost creates a pressure for reducing inventories because carrying excess inventory ties up capital that could be invested in other areas to generate a higher return.

Which One of the Following Reasons Creates a Pressure for Reducing