Why Do Companies Try to Keep Inventory Low

question 74

Multiple Choice

Why do companies try to keep inventory low?

• A) It keeps production stable.
• B) Money that is not tied up with inventory can be used for other purposes.
• C) The lower the inventory, the more flexibility the company has.
• D) It keeps the employment in check.
• E) It keeps the raw materials market balanced.

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Definitions:

Print

The process of producing text, graphics, or images on paper or other printable material by physically marking them, typically using a printer connected to a computer or digital device.

Slide

A single page of a presentation in a slideshow, containing information like text, images, and charts, typically used in presentations.

Paper

Material commonly made from cellulose pulp derived mainly from wood, rags, or certain grasses, processed into flexible sheets or rolls and used for writing, printing, or packaging.

Text Box

A rectangular area in a document or application where users can enter or edit text.