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:

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A process of thinking that involves knowing something without analytic reasoning, often based on experiences and feelings.

Analytic Thought

The process of logical reasoning and problem solving, breaking down complex information into smaller components for assessment.

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The Programme for International Student Assessment, an international survey evaluating education systems worldwide by testing the skills and knowledge of 15-year-old students.

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Students who exhibit behaviors that are hostile or disruptive to social norms and interactions.