Question

In inventory control, deciding how much stock to hold becomes especially crucial under which condition?

Options

• When advertising expenditure is high

• When the product is highly perishable only

• When the per-unit cost is high

• When the number of channel members is large

Answer 1

Deciding how much stock to hold is crucial, especially when the per-unit cost is high. Holding expensive stock ties up significant capital, making inventory decisions more critical for the firm.