The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.

Inventory Effect

The impact that changes in inventory levels have on a company's financial statements, including effects on working capital, cash flow, and profitability.

Inverse Relationship

A relationship between two variables where one variable increases as the other decreases, or vice versa.

Lost Sales

Potential sales opportunities that have been missed or unattained, often due to factors like stockouts or service issues.