__________ inventories exist because materials must be moved from one location to another.
A)Buffer
B)Anticipation
C)Transit
D)Cycle

Question

Quizplus · Accepted Answer

Transit inventories are held because materials must be moved from one location to another. These inventories exist to compensate for the time taken to transport materials between locations. A buffer inventory is held to compensate for fluctuations in demand, an anticipation inventory is held to prepare for expected increases in demand, and a cycle inventory is held due to the need to produce and ship items in batches rather than continuously.

__________ Inventories Exist Because Materials Must Be Moved from One