APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 60

Which of the following order characteristics would make increased levels of inventory necessary?

Answer options

• A. Speed
• B. Variability
• C. Cost
• D. Delivery

Correct answer: C

Explanation

The correct answer is C, as higher costs often lead to the need for increased inventory levels to manage expenses effectively. Options A, B, and D may influence inventory management but do not inherently necessitate increasing inventory levels like cost does.