Interpretation of the inventory holding period depends on the industry in which a business operates. An increase in inventory days might be explained by which of the following? a) Seasonal variations in demand leading to a dramatic increase in the volume of sales of finished goods b) Supply problems arising from difficulties in purchasing raw materials from suppliers c) A new policy to reduce the level of inventory to reduce the associated costs of storage and insurance d) A business deliberately building up inventories prior to a large order THERE CAN ONLY ONE OPTION
Interpretation of the inventory holding period depends on the industry in which a business operates. An increase in inventory days might be explained by which of the following? a) Seasonal variations in demand leading to a dramatic increase in the volume of sales of finished goods b) Supply problems arising from difficulties in purchasing raw materials from suppliers c) A new policy to reduce the level of inventory to reduce the associated costs of storage and insurance d) A business deliberately building up inventories prior to a large order THERE CAN ONLY ONE OPTION
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Interpretation of the inventory holding period depends on the industry in which a business
operates. An increase in inventory days might be explained by which of the following?
a) Seasonal variations in demand leading to a dramatic increase in the volume of sales of
finished goods
b) Supply problems arising from difficulties in purchasing raw materials from suppliers
c) A new policy to reduce the level of inventory to reduce the associated costs of storage
and insurance
d) A business deliberately building up inventories prior to a large order
THERE CAN ONLY ONE OPTION
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