Give an example of lost opportunity cost and
obsolescence and discuss their impact on inventory carrying
costs.
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General Management
Give an example of lost opportunity cost andobsolescence and discuss their impact on inventory carryingcosts.
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A typical example of lost opportunity cost is backorders or order backlogs The opportunity cost is incurred when the organization had the opportunity to make additional revenueprofit but missed out on that opportunity due to any factor One such factor is not having enough inventory onhand This could be likely due to underestimated
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