Why is it important for organizations to balance their inventory levels effectively?

Why is it important for organizations to balance their inventory levels effectively?
A . To avoid the expense of unsold stock and warehousing costs
B . To maximize the value of their inventory assets
C . To prevent damage to perishable items during transportation
D . To maintain a constant flow of raw materials and packaging

View Answer

Answer: A

Explanation:

Balancing inventory levels is crucial to prevent unnecessary costs from excess stock and warehousing while ensuring supply chain efficiency. [P-4]