Which of the following is not a reason to carry inventory?
A) To provide a safeguard for variation in raw material delivery time
B) To take advantage of economic purchase-order size
C) To maintain independence of operations
D) To meet variation in product demand
E) To keep the stock out of the hands of competitors

Question

Quizplus · Accepted Answer

Carrying inventory to keep it out of the hands of competitors is not a valid reason to carry inventory. Other options (A, B, C, D) are valid reasons to carry inventory.

Which of the Following Is Not a Reason to Carry