Which of the following functions of inventory exists to address unpredictable supply or demand?

Question

Quizplus · Accepted Answer

Fluctuation inventory is held to address unpredictable supply and demand fluctuations. This type of inventory provides a buffer to help ensure that customer demand can be met despite unexpected changes in orders, supply chain disruptions, or other unforeseen events. Anticipation inventory is held in anticipation of future demand, hedge inventory is held to mitigate risk or uncertainty (such as in commodity markets), and transportation inventory is held to account for time lags in transportation or logistics processes.

Which of the Following Functions of Inventory Exists to Address