_____ inventories serve as a buffer between purchasing and production.
A) Raw material
B) Independent demand
C) In-process
D) Just-in-time
E) Finished-goods

Question

Quizplus · Accepted Answer

Raw material inventories are typically used to serve as a buffer between purchasing and production. This allows for a steady flow of materials to be available for production, while also allowing for variations in demand and supply chain disruptions. The other types of inventories listed may also be used in production, but they do not necessarily serve as a buffer between purchasing and production.

_____ Inventories Serve as a Buffer Between Purchasing and Production