Which of the following are reasons for keeping inventory?
I. To allow for goods in transit.
II. To build up stock for seasonal demand.
III. To reduce production costs.
IV. To guard against uncertainty in supply and demand.
A) I, II and III only
B) II, III and IV only
C) II and IV only
D) all the above are valid reasons

Question

Quizplus · Accepted Answer

All the options listed are valid reasons for keeping inventory. I allows for continuous operations during delivery times, II prepares for increased demand during specific seasons, III can optimize production runs and reduce costs, and IV provides a buffer against fluctuations in supply and demand.

Which of the Following Are Reasons for Keeping Inventory