Tidewater Company Uses 100,000 Pounds of Fresh Flowers Each Year

Multiple Choice

Tidewater Company uses 100,000 pounds of fresh flowers each year. Because of rising energy costs, it has become more expensive for Tidewater to store flowers. All other factors being equal, Tidewater should _____ its inventory of fresh flowers, which would _____ the risk of running out of inventory

A) reduce; have no effect on
B) increase; have no effect on
C) reduce; increase
D) increase; increase