Which of the following statements indicates a reasonable approach to the management of inventory and storage?
a. "Inventory that sits in a warehouse doesn't do any harm; besides, it might be needed someday."
b. "Inventory and storage costs should be minimized, regardless of the impact on customer service."
c. "The cost of stockouts always exceeds the cost of carrying inventory."
d. "Always have a large safety stock of inventory to eliminate the possibility of stockouts."
e. "Have enough inventory on hand to meet the expected level of customer service required, but don't carry too much."
Answer: e. "Have enough inventory on hand to meet the expected level of customer service required, but don't carry too much."