Which action helps control inventory costs?

Which action helps control inventory costs?

• A. Order appropriate quantity
• B. Increase portion sizes
• C. Extend hours
• D. Hire more staff

Answer: (A)

Controlling inventory costs comes from ordering the right quantity of stock. When you order an appropriate quantity, you minimize the cash tied up in inventory, reduce holding and spoilage costs, and lower the chance of waste or obsolescence. This balance also helps avoid frequent emergency orders that can spike costs. Actions like increasing portion sizes raise food costs and waste, extending hours adds energy and labor expenses, and hiring more staff increases payroll – none of these directly reduce the costs tied to storing and managing inventory. So the best choice is to order the right quantity to keep inventory costs in check.

Controlling inventory costs comes from ordering the right quantity of stock. When you order an appropriate quantity, you minimize the cash tied up in inventory, reduce holding and spoilage costs, and lower the chance of waste or obsolescence. This balance also helps avoid frequent emergency orders that can spike costs. Actions like increasing portion sizes raise food costs and waste, extending hours adds energy and labor expenses, and hiring more staff increases payroll – none of these directly reduce the costs tied to storing and managing inventory. So the best choice is to order the right quantity to keep inventory costs in check.