Seasonal inventory should be used when
A)a company can rapidly change the rate of its production system at a very low cost.
B)changing the rate of production is expensive (e.g. ,when workers must be hired or fired).
C)adjusting to a period of low demand without incurring large costs.
D)the world is perfectly predictable.

Question

Quizplus · Accepted Answer

Seasonal inventory is beneficial when changing production rates is costly, such as when hiring or firing workers, as it allows a company to maintain a steady production rate and store excess inventory for periods of higher demand.

Seasonal Inventory Should Be Used When