ECONOMICS

Detailed explanation-1: -Consumer demand would typically be characterized as . Which of the following types of inventory are typically outside the control of supply chain operation? Obsolete inventory.

Detailed explanation-2: -The answer is b. Raw Materials Inventory are inventories that are not yet put in the production process. Upon putting in the production process, it will be part of work in process. Once finished into a finished product, it will be part of Finished Goods Inventory.

Detailed explanation-3: -Therefore, manufacturing operations involves all the processes-including inventory management, materials requirement planning (MRP), supply chain management, sales management, production cost, and quality control-needed in order to produce goods for consumers and earn profit.

Detailed explanation-4: -Inventory carrying costs can be sorted into four categories: capital costs, storage costs, service costs and inventory risk costs. Capital expenditures are monies spent on products and any interest and fees incurred if the company took out a loan to pay for the goods.