Which of the following is a disadvantage of holding large inventories?

A. Lack of protection against stock-outs
B. Increased ordering costs
C. Irregular production schedules
D. Additional holding costs



Answer :

Final answer:

Holding large inventories results in additional holding costs due to increased storage expenses, potential obsolescence, and the need for larger storage facilities.


Explanation:

A disadvantage of holding large inventories is additional holding costs. Large inventories lead to increased storage costs, potential obsolescence, and the need for larger storage facilities, all of which contribute to additional expenses for a business.


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