Identify a Disadvantage of Holding Larger Inventories

question 67

Multiple Choice

Identify a disadvantage of holding larger inventories.

• A) Increased ordering costs
• B) Increased risk of stock-outs and lost sales
• C) Tied-up funds until goods are sold
• D) Irregular production schedules

---

Definitions:

Violated

Broken or failed to comply with a rule, agreement, or law.

Pollution-Control Equipment

Devices or systems designed to reduce or eliminate the release of pollutants into the environment.

Water Pollutants

Substances that contaminate bodies of water, negatively affecting water quality and ecosystem health.

Noxious Odors

Unpleasant and potentially harmful smells that can cause discomfort or health issues.