Which of the Following Statements Is a Valid Reason for Chip

question 58

Multiple Choice

Which of the following statements is a valid reason for chip manufacturers to carry minimal inventory?

• A) Rising transportation costs greatly increase the costs of manufacturing and make moving inventory between locations highly expensive.
• B) Chip manufacturers maintain low inventories to hedge the move of semiconductor technology away from silicon-based chips.
• C) The potential physical and electronic damage to silicon chips if left unused for extended periods of time deters manufacturers from maintaining higher inventories.
• D) Chip manufacturers leverage the higher costs of chip-based products to their advantage by keeping supply low compared to demand.
• E) Products with a significant chip-based component rapidly fall in value and can cause huge losses when overproduced.

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