Final answer:
Marketers buy in large volumes to benefit from lower prices, but this leads to higher inventory carrying costs for logistics managers.
Step-by-step explanation:
Marketers purchase in large volumes to allow lower prices, but this results in higher carrying costs for logisticians. Buying in bulk often enables marketers to negotiate better prices due to economies of scale, meaning that the cost per unit of production decreases as the scale of production increases. However, this practice leads to higher inventory levels, which in turn results in increased carrying costs, such as storage, insurance, and opportunity costs associated with holding goods. The costs associated with larger quantities also reflect the barriers to entry for smaller firms, as they might not be able to compete with the low prices driven by economies of scale. Similarly, differentiation among products may not be sufficient for new large firms to enter the market as they might be unable to sell additional quantity at a profitable price.