An inventory held to reduce or eliminate fluctuations in production is called a(n)______.
A)smoothing inventory
B)hedge inventory
C)anticipation inventory
D)pipeline inventory

Question

Quizplus · Accepted Answer

A smoothing inventory is held to smooth out fluctuations in production and demand, ensuring that production can continue at a steady pace. This type of inventory is also known as a buffer or safety inventory. Hedge inventory is held to protect against price fluctuations, anticipation inventory is held in anticipation of future demand, and pipeline inventory is held while products are in transit.

An Inventory Held to Reduce or Eliminate Fluctuations in Production