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

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Definitions:

PIPEDA

The Personal Information Protection and Electronic Documents Act, a Canadian law governing data privacy.

Right to Privacy

The right of individuals to keep their personal information confidential and protected from unauthorized disclosure.

Downsizing Strategies

Approaches undertaken by businesses to reduce its size, cost structure, or workforce to improve efficiency and profitability.

Work Redesign

The process of altering jobs or workflows to improve efficiency, enhance employee satisfaction, or adapt to new business needs.