Holding inventory is NOT risky because:
A) It provides no security for uncertain demand
B) Inventory ties up considerable amounts of working capital
C) Items held in stock can deteriorate
D) Inventory can become obsolete

Question

Quizplus · Accepted Answer

Holding inventory is considered risky for several reasons, including tying up working capital, potential deterioration, and obsolescence. However, it does provide security against uncertain demand, making A the incorrect statement and thus the right choice for this question.

Holding Inventory Is NOT Risky Because