Holding Low Levels of Inventory Results in ___________ Inventory Carrying

question 22

Multiple Choice

Holding low levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.

• A)high; high
• B)high; low
• C)low; high
• D)low; low

---

Definitions:

Precipitation

Any form of water - liquid or solid - falling from the atmosphere to the Earth's surface, including rain, snow, sleet, and hail.

Evaporation

The process by which water transforms from a liquid to a gas or vapor state, often driven by heat from the sun, playing a critical role in the water cycle.

Drought

An extended duration of significantly reduced precipitation, resulting in a scarcity of water.

Aral Sea

A lake located in Central Asia that has significantly shrunk since the 1960s due to the diversion of the rivers that fed it for agricultural irrigation.