Final answer:
Economies of scale can be utilized to reduce holding and ordering costs and optimize order quantity. ABC analysis is a method used to categorize inventory items based on their value and importance. It can be applied in a Techsoft warehouse supply chain to identify high-value items for cost reduction.
Step-by-step explanation:
Economies of scale can be utilized by firms to reduce holding and ordering costs and optimize order quantity. One method to analyze inventory costs is ABC analysis which categorizes inventory items based on their value and importance. By focusing on high-value items, firms can ensure efficient supply chain management and cost reduction. For example, in a Techsoft warehouse supply chain, ABC analysis can be performed to identify high-value items that require more attention and resources.