The Primary Advantage of Holding Inventory Is to Minimise the Risk

question 11

True/False

The primary advantage of holding inventory is to minimise the risk of stock-outs and seasonality in demand.

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Definitions:

Bureaucracies

Organizational structures characterized by a hierarchy of authority, a clear division of labor, explicit rules, and impersonality.

Woodward's Studies

Research by Joan Woodward that established a link between technology and organizational structure, suggesting the optimal structure varies by technological type.

Continuous-Process Plants

Factories where production materials are moved continuously through a series of steps or processes.

Mass Production

The manufacturing of large quantities of standardized products, often using assembly line technology and methods, to achieve economies of scale.