Which of the following best expresses the advantages of holding inventory? O It

Question

Which of the following best expresses the advantages of holding inventory? O It protects suppliers from economic uncertainty, stimulates economic growth and reduces wastage O Reduces holding costs, is a hedge against depreciation and is a hedge against uncertain supply O Promotes prompt turnaround time, reduces holding costs and provides manufacturer with the lowest possible cost of goods sold O It is a hedge against uncertain demand, hedge against uncertain supply and helps economize on ordering costs

Explanation / Answer

Holding inventory is a hedge against uncertain demand, hedge against uncertain supply and helps economize on ordering costs Option 4 is correct

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