Which of the following is not 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) to double the amount of safety stock

Question

Quizplus · Accepted Answer

Inventory is not meant to double the amount of safety stock, but rather to have a sufficient amount of safety stock to prevent stockouts and ensure smooth operations. Doubling the safety stock can lead to unnecessary carrying costs and can create inventory management issues.

Which of the Following Is Not a Function of Inventory