Supply Chain Management

Category - Managing Supply

_____ is the cost of holding inventory incurred by the shippers’ supply chain network.
  1. Inventory cost
  2. Transportation cost
  3. Shipment cost
  4. Insurance cost
Explanation
Answer: A - Inventory cost is the cost of holding inventory incurred by the shippers’ supply chain network. It is considered fixed for short-term transportation decisions that assign each customer shipment to a carrier.
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