1. Explain why, in the traditional view of inventory, carrying costs increase as ordering cost decrease.

2. Discuss the traditional reasons for carrying inventory.

3. How safety stock is used to deal with demand uncertainty?

Answer rating: 100% (QA)

1 In the traditional view of inventory management carrying costs increase as ordering costs decrease due to the tradeoff between the two Carrying costs refer to the expenses associated with holding an... View the full answer