Let's suppose that Green Gardening Tools applies another approach to meet demand in which it builds up inventory during the off-season to keep production stable year round. What would be the advantage and the disadvantage of this approach?
A)Smaller inventory; higher profits.
B)Smaller, less expensive factory; fewer promotions.
C)Smaller less expensive factory; higher inventory carrying costs.
D)Larger profits, smaller labor force.

Question

Quizplus · Accepted Answer

If Green Gardening Tools applies the approach of building up inventory during the off-season to keep production stable year round they would be able to have a smaller, less expensive factory. However with high inventory carrying costs the disadvantage of the approach is that it has higher inventory carrying costs.

Let's Suppose That Green Gardening Tools Applies Another Approach to Meet