Inventories are needed in business channels because:

Question

Quizplus · Accepted Answer

Inventories are needed in business channels because operating deficiencies in logistical systems often result in product unavailability. In other words, supply chain disruptions can occur, and having enough inventory on hand can help mitigate the effects of those disruptions. While production and demand matching and business customers predicting their product needs with certainty are also important factors, they do not fully explain the need for inventories in business channels.

Inventories Are Needed in Business Channels Because