Which of the following is a function of inventory?
A) to decouple various parts of the production process
B) to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand
C) to take advantage of quantity discounts
D) to hedge against inflation
E) All of these are functions of inventory.

Question

Quizplus · Accepted Answer

Inventory serves multiple functions such as decoupling different parts of the production process, providing a selection of goods for anticipated customer demand, separating the firm from fluctuations in demand, taking advantage of quantity discounts, and hedging against inflation. Therefore, option E, which states that all the given options are the functions of inventory, is the best choice.

Which of the Following Is a Function of Inventory