Question

Which of the following would reduce inventory costs thereby reducing operations costs?
A. Increasing inventory dollar days
B. Increasing inventory turnover
C. Increasing order lead time
D. Increasing safety stock

Answer 1

Answer: B. Increasing inventory turnover

Explanation:

Increasing inventory turnover would reduce inventory costs thereby reducing operations costs. Since there's increase in inventory turnover, it means that there's an increase in demand or sales or generally production level has risen.

This will therefore help to reduce inventory costs thereby reducing operations costs.