Which one of the following costs is typically NOT considered in sales and operations…

➤ Why are inventory holding and backorder costs included in S&OP?
Inventory holding and backorder costs quantify trade-offs between service level and cost. S&OP uses these values to set safety stock, production schedules, and replenishment. By comparing holding versus shortage costs, planners choose inventory targets, production rates, and acceptable backorder levels to meet demand while controlling working capital.