BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To facilitate availability of a variety products for the customer.
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To avoid price increases.
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To ensure that demand is not met.
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To take advantage of ordering cycles.
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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: -Suppliers are key actors that ensure that the firm is able to serve its customers. Anticipated price increase from your suppliers is not one of the reasons why a firm is holding its inventories.
Detailed explanation-3: -The primary reason for holding stock is to generate revenue through the sale of goods and services. To avoid the risk of a stock-out occurring and the subsequent potential towards lost sales, a company will typically hold some level of stock on hand. This is generally referred to as buffer or safety stock.
Detailed explanation-4: -Answer and Explanation: A. Manufacturing inventory is not a type of inventory held by a manufacturer. Manufacturers maintain raw materials, work-in-process, and finished goods inventories and account for how the inventories are modified by direct labor and materials in the process.