Which inventory function provides a hedge against inflation?
A) anticipation inventory
B) fluctuation inventory
C) lot-size inventory
D) MRO inventory
E) speculative inventory

Question

Quizplus · Accepted Answer

Speculative inventory provides a hedge against inflation because it involves holding excess inventory in anticipation of price increases. This allows a company to purchase goods at current prices and then sell them at higher prices in the future if inflation occurs.

Which Inventory Function Provides a Hedge Against Inflation