All of the following are reasons to keep inventory EXCEPT:
A) Allow flexibility in production scheduling
B) Couple supply with demand
C) Meet fluctuations in product demand
D) Provide a safeguard against delivery time variations

Question

Quizplus · Accepted Answer

B) Couple supply with demand is not a reason to keep inventory. Inventory is kept to manage discrepancies between supply and demand, not to couple them directly. It helps in dealing with demand fluctuations, production scheduling flexibility, and variations in delivery times, rather than directly linking supply with demand.

All of the Following Are Reasons to Keep Inventory EXCEPT