Which of the following is not one of the wrong reasons for investing in inventory?
A)Poor quality and material yield.
B)Extended order-cycle times from global sourcing.
C)Hedge against marketplace uncertainty.
D)Specifying custom items for standard applications.
E)Inefficient manufacturing processes.

Question

Quizplus · Accepted Answer

Hedging against marketplace uncertainty is a legitimate reason for investing in inventory as it can help a company ensure it has enough stock to meet demand, even if unexpected events occur. The other options listed are all wrong reasons for investing in inventory as they can lead to excessive inventory, increased costs, and decreased profitability.

Which of the Following Is Not One of the Wrong