The Home Depot offers customers a huge selection of home improvement merchandise.As a result inventory investment:
A) increases because of the increase in demand in the home improvement industry
B) increases because they have to carry backup stock for each SKU
C) increases because of the value of the assortment
D) decreases because of the increase of the customer base
E) decreases because of the introduction of backup stock

Question

Quizplus · Accepted Answer

The Home Depot carries a huge selection of home improvement merchandise which requires them to carry backup stock for each SKU, this leads to an increase in inventory investment.

The Home Depot Offers Customers a Huge Selection of Home