9. Procurement cost ___________________________ with the increase in inventory level.

Procurement costs typically increase with the increase in inventory levels. This is primarily because maintaining a higher inventory requires more purchases, leading to additional costs associated with acquiring raw materials or products. Furthermore, as inventory levels rise, companies may incur increased holding costs, which include storage, insurance, and potential obsolescence.

To elaborate, the relationship between procurement cost and inventory levels can also be affected by factors such as order quantities and frequency, supplier agreements, and market demand. Companies striving for efficiency often aim to balance procurement costs against inventory levels to minimize overall costs while meeting customer demand. Therefore, while there may be strategic reasons for increasing inventory, it often results in higher procurement costs overall.