Which of the following is not a use of inventory?
A)the decoupling function
B)quantity discounts
C)irregular supply and demand
D)the translucent function
E)to avoid stockouts and shortages

Question

Quizplus · Accepted Answer

The translucent function is not a recognized use of inventory in operations management. The other choices are all valid reasons for maintaining inventory levels. The decoupling function involves holding inventory to create separation between different stages of the production process. Quantity discounts are a way to incentivize customers to buy larger quantities, which can create demand for higher inventory levels. For irregular supply and demand, holding enough inventory can help prevent stockouts when demand peaks or supply is disrupted. Finally, avoiding stockouts and shortages is the most fundamental reason for maintaining inventory levels.

Which of the Following Is Not a Use of Inventory