ECONOMICS

Detailed explanation-1: -Which of the following statements is not a common reason for holding inventory in organisations? To facilitate availability of a variety products for the customer.

Detailed explanation-2: -Which of the following is NOT a principle reason for holding finished goods inventory? Prevention of production shutdowns due to parts shortages.

Detailed explanation-3: -Filling back-orders through expedited shipping or replenishing stock at higher than wholesale prices are some examples of shortage costs. The most damaging cost of shortage however is a dissatisfied customer and the temporary or permanent loss of sales through insufficient stock levels.

Detailed explanation-4: -Expert-Verified Answer It is also called stock control. Economic order quantity has minimum total cost per order, its inventory carrying costs increases with quantity per order and its Ordering cost decreases with lo size. Hence, the correct answer among all the options is option d) All of the above.