Which of the following is not a traditional reason for carrying inventory?
A) to satisfy customer demand
B) to avoid shutting down manufacturing facilities
C) to buffer against unreliable production processes
D) to hedge against future price increases
E) all of these are traditional reasons for carrying inventory

Question

Quizplus · Accepted Answer

All of the options listed (A to D) are traditional reasons for carrying inventory. These include satisfying customer demand, avoiding the shutdown of manufacturing facilities, buffering against unreliable production processes, and hedging against future price increases.

Which of the Following Is Not a Traditional Reason for Carrying