Becker Sims: Carrying cost impact

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    Pravi.iyer
    Participant

    Hi,

    Becker B2 – M3 – Simulation 1 – Task 4 – Row 4

    Solution: Decreasing carrying costs makes it more likely that the company will carry more inventory, which will increase the days in inventory ratio and will not shorten the working capital cycle.

    Wouldn't decrease in carrying cost actually mean that less inventory is carried. Could someone explain the logic please?

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