Which of the following would not generally be a motive for a firm to hold inventories?
A) to decouple or separate parts of the production process
B) to provide a stock of goods that will provide a selection for customers
C) to take advantage of quantity discounts
D) to minimize holding costs
E) to eliminate safety stock

Question

Quizplus · Accepted Answer

Firms hold inventories to manage production processes, meet customer demand, and take advantage of discounts, but minimizing holding costs is not a motive for holding inventories; rather, it is a reason to reduce them.

Which of the Following Would Not Generally Be a Motive