At the annual managers' planning conference, Andrea Conrad asks the other managers to consider her proposal to increase the quantity of inventory to a five-week supply in order to increase the percentage of completely filled customer orders from 85% to 90%. She states that she is willing to trade off the ____ incurred for the positive effect of better customer service.
A. lower response time
B. higher warehousing costs
C. higher transportation costs
D. higher order processing costs
E. higher performance levels
Answer: B
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