Which of the Following Is a Disadvantage of Excessive Inventory

question 23

Multiple Choice

Which of the following is a disadvantage of excessive inventory?

• A)it creates an unnecessary waste of scarce resources.
• B)It leads to higher inventory ordering cost.
• C)It leads to lower average inventory.
• D)It eliminates cycle stock.
• E)It reduces the need to conduct cycle count.

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Definitions:

Keeping Customers

involves strategies and practices to retain customers, enhancing customer loyalty and preventing turnover.

Innovations

The process of translating an idea or invention into goods or services that create value or for which customers will pay.

Service and Products

The combination of tangible goods and intangible services that a company offers to its customers.

High-Speed Color Copier

A device capable of reproducing documents and images quickly in full color.