Explain why a constant rate of increase (rmax) for a

section 12 part 3 ds 412 Inadequate control of inventories can result in both under and overstocking of items Under stocking results in: Missed delivery Lost sales- inflation / liabilities/ target market decline Dissatisfied customers- returns/ faulty product/ poor service Production/operations challenges- demogrpahic/ district or are business is based Overstocking results in: Spoilage cost/ expenses/ liabilities Increased risk - Theft Obsolesce Ties up funds – Opportunity costs Increased insurance cost Increased taxes Depreciation Increased handling costs Takes additional space – Increase space cost