The inventory level at Middleton Enterprises currently far exceeds the level needed for normal operations. Which of the following does NOT support this situation?
A) Middleton is aware that it does not have enough storage space for the inventory it ordered.
B) The demand for Middleton's products tends to fluctuate unpredictably and the company wants to be able to meet an unanticipated surge in demand.
C) The demand for Middleton's products is seasonal and Middleton is trying to smooth out its production schedule.
D) Middleton's actual sales fell significantly below the level predicted by the company's sales forecast.

Question

Quizplus · Accepted Answer

If Middleton is aware that it does not have enough storage space for the inventory it ordered, it suggests that Middleton may have ordered more inventory by mistake, rather than intentionally carrying excess inventory for operational purposes. The other options suggest valid reasons why Middleton might intentionally carry excess inventory.

The Inventory Level at Middleton Enterprises Currently Far Exceeds the Level