The traditional approach to inventory management is to maintain a level of inventory that
A) minimizes inventory cost.
B) maximizes customer service.
C) maintains a balance between inventory cost and customer service.
D) None of these answer choices is correct.

Question

Quizplus · Accepted Answer

Maintaining a balance between inventory cost and customer service is the best choice because having too much inventory can be costly while having too little inventory can lead to stockouts and poor customer service. By finding the right balance, a company can maintain good customer service levels while keeping inventory costs at a reasonable level.

The Traditional Approach to Inventory Management Is to Maintain a Level