Which of the Following Is NOT a Benefit of Holding

question 54

Multiple Choice

Which of the following is NOT a benefit of holding inventory?

• A) minimizes the risk that the firm will not be able to obtain an input it needs for production
• B) seasonality of demand, meaning that customer purchases often do not match the most efficient production cycle, leading to a buildup of inventory in off-peak periods
• C) minimizes order cost from placing multiple orders throughout the year
• D) minimizes risks involved in spoilage and obsolescence

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Definitions:

Functional Structures

An organizational framework where the company is divided into departments based on their function, such as marketing, finance, and production.

Informal Structures

Unofficial, non-bureaucratic networks and relationships that influence decision-making and culture in organizations.

Divisional Structure

An organizational structure where operations are grouped into separate divisions based on products, services, or geographic markets, each with its own management team.

Network Structure

The arrangement and interconnections of nodes (such as individuals, organizations, or computers) within a network, defining how information, resources, or influence travels across the network.