Smith Company tries to manage their inventory levels so that they will have just enough to meet customer demand,without keeping an excess of funds tied up in inventory.Given this situation,Smith Company hopes to have a high number of days in inventory.

Question

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Having a high number of days in inventory means that the company is holding onto inventory for a longer period of time, which ties up more funds and may indicate inefficiencies in managing inventory. The goal is typically to have a low number of days in inventory, while still being able to meet customer demand.

Smith Company Tries to Manage Their Inventory Levels So That