Companies Are Reducing Inventory Costs by Treating Inventory Items Differently

Multiple Choice

Companies are reducing inventory costs by treating inventory items differently. Critical items defined as high risk, high opportunity and commodities defined as low risk, high opportunity. Recently, your company has introduced a product that is considered by the distributor a "bottleneck" item. What is the risk/reward relationship for "bottleneck" items?

A) High risk, low opportunity
B) High risk, high opportunity
C) Low risk, high opportunity
D) Low risk, low opportunity
E) Low risk, mediocre opportunity