Question 16 0/4.55 pts A consumer packaged goods manufacturer has the following

Question

Question 16 0/4.55 pts A consumer packaged goods manufacturer has the following cash flow lost to inventory relationship. Which of the following statements is generally incorrect Number Service Level Cash Flow LostInventory 71 99% |$ 824,375.00 I s 31,250,000.00 4,121,875.00 S 23,750,000.00 90% Is 8,243,750.00 | s 17,500,000.00 80% |$ 16,487,500.00 | S 12,500,000.00 3| 70% ls 24,731,250.00 | S 8,750,000.00 32,975,000.00 S6,250,000.00 il 50% E 41,218,750.00 E 5,000,000.00 6 95% 60% Service Level Inventory Cash Plow Lost

Explanation / Answer

A company should not spend more on inventory than it will earn in increased cash flow from the additional inventory expenditure.

So Option 4 is correct answer.

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