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

---

Definitions:

Palmar Reflex

An involuntary movement where babies close their fingers in a grasp when their palm is touched.

Withdrawal Reflex

An involuntary response to a painful stimulus, leading to the automatic withdrawal or movement away from the source of pain.

Perceptual Development

The gradual development of the ability to interpret and understand sensory information.

Nearsighted

A vision condition in which close objects are seen clearly, but objects farther away appear blurred.