Inventories help manufacturers cope with unexpected changes in the supply of their resources or in the demand for their products.

Question

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Inventories provide a buffer to manufacturers to adjust their production rates in response to changes in demand or supply. They help ensure that product availability is maintained even during periods of disruption or uncertainty. Additionally, having a stock of inventory can also help companies take advantage of sudden spikes in demand or unexpected opportunities to sell their products.

Inventories Help Manufacturers Cope with Unexpected Changes in the Supply