Which of the following is a function of inventory?
A) to decouple or separate parts of the production process
B) to decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers
C) to take advantage of quantity discounts
D) to hedge against inflation
E) All of the above are functions of inventory.

Question

Quizplus · Accepted Answer

All of the given options are functions of inventory. Inventory allows for the decoupling of the production process, provides a buffer against fluctuations in demand, enables the firm to take advantage of quantity discounts, and can serve as a hedge against inflation by allowing the firm to purchase and store materials at lower prices. Therefore, all options are correct.

Which of the Following Is a Function of Inventory