Identify a benefit of holding larger inventories.
A)Less holding costs
B)Less risk
C)Abundance of funds
D)Smoother production schedules

Question

Quizplus · Accepted Answer

Holding larger inventories can help maintain more stable production schedules as there is less likelihood of running out of raw materials or goods in progress. This can lead to more efficient use of resources and potentially reduce the risk of production disruptions. However, holding larger inventories also comes with increased holding costs and ties up funds in inventory that could be used elsewhere.

Identify a Benefit of Holding Larger Inventories