Why Do Companies Try to Keep Inventory Low

question 83

Multiple Choice

Why do companies try to keep inventory low?

• A) It keeps production stable.
• B) It keeps the raw materials market balanced.
• C) The lower the inventory, the more flexibility the company is.
• D) It keeps the suppliers in competition with one another.
• E) Money that is not tied up with inventory can be used for other purposes (increased liquidity).

Appreciate the role of strategic leadership in redirecting a company.

Understand various business strategies like cost-leadership, focus strategy, and differentiation for competitive positioning.

Understand the concept of organizational foundation, including core values, mission or vision, and organizational culture.

Identify the role of marketing departments and how they listen to customers to inform decisions.

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Definitions:

Self-Regulation

The ability of an individual or organization to monitor and control their own behavior, actions, or standards without external intervention.

Professional Standards

A set of ethical and operational guidelines or principles that govern the conduct of professionals within a particular field.

Ethical Standards

Guidelines that govern the professional conduct of individuals in various professions, particularly the legal profession.

Indirectly Regulated

Subject to control or influence in a less direct manner through regulations impacting related areas or intermediaries.