Which of the following would not generally be considered as one of the functions for holding inventories?
A)Smoothing seasonal production
B)Decoupling successive operations
C)Hedging against price increases
D)Minimizing holding costs
E)Protecting against stock-outs

Question

Quizplus · Accepted Answer

Minimizing holding costs is not a function for holding inventories, but rather a consideration in the management of inventory levels. The other options (smoothing seasonal production, decoupling successive operations, hedging against price increases, and protecting against stock-outs) are all valid functions of holding inventories.

Which of the Following Would Not Generally Be Considered as One