What Is the LEAST Likely Reason for Holding Inventory

question 32

Multiple Choice

What is the LEAST likely reason for holding inventory?

• A) anticipated demand surges
• B) shifts in service output needs
• C) supply and demand uncertainty
• D) economies of scale in production
• E) lengthy shipment transportation time

---

Definitions:

Average Expense

An average amount of money spent, typically calculated over a specific period of time, reflecting common expenditure patterns.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean of the data set.

Confidence Interval

A statistical measure that provides an estimated range of values likely to include a population parameter, calculated from a given set of sample data.

Population Mean

The population mean is the average value of all data points in a full set of values, representing the central tendency of the population.