It is costly to hold inventory, but inventory can also be useful in a process because a. adding inventory to a process will shorten the average time a unit spends in a process. b. adding inventory to a process can help reduce situations in which sales are lost due to uncertain demand. c. adding inventory to a process is likely to increase quality. d. adding inventory to a process will increase the profit margin of the item.

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Answer 1

Textbook Question

Chapter 10, Problem 1CQ

It is costly to hold inventory, but inventory can also be useful in a process because

a. adding inventory to a process will shorten the average time a unit spends in a process.
b. adding inventory to a process can help reduce situations in which sales are lost due to uncertain demand.
c. adding inventory to a process is likely to increase quality.
d. adding inventory to a process will increase the profit margin of the item.

Expert Solution & Answer

Summary Introduction

To determine: The advantage of using inventory.

Explanation of Solution

Determine the advantage of using inventory:

Even though holding inventory costs for the firm, it will be useful for the company to avoid stock-outs. Adding inventory helps the firm to manage the situation in which the products go out-of-stock due to uncertain demand. It might lead to loss of sales. Adding inventory helps to avoid this.

Hence, option (b) is correct and options (a), (c), and (d) are incorrect.

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It is costly to hold inventory, but inventory can also be useful in a process because:a. adding inventory to a process will shorten the average time a unit spends in a process.b. adding inventory to a process can help reduce situations in which sales are lost due touncertain demand.c. adding inventory to a process is likely to increase quality.d. adding inventory to a process will increase the profit margin of the item.

â€¢ 1An advantage of a make-to-stock process is which of the following? o It responds directly to customer orderso It allows the firm to avoid inventory costso Rapid delivery of a standard producto All units of output are uniqueCorrectâ€¢ 2According to Littleâ€™s law, which of the following can be used to estimate inventory?o Set up time times throughput rateo Process time times cycle timeo Process velocity times flow timeo Throughput rate times flow timeCorrectâ€¢ 3Which of the following is a principle of reengineering? o Integrate the outcomes of parallel activitieso Organize around the taskso Treat geographically dispersed resources as though they were centralizedo Capture information many times, at the source and where it is interpretedCorrectâ€¢ 4Which of the following is one of the major types of stakeholders impacted by most consulting projects?o International government regulatorso Other consultantso…

Which of the following type of inventory can be used to describe the "Cleaning materials" used in an organization A. Work in Process B. Spare parts C. Consumables D. Seasonal

Answer 2

Textbook Question

Chapter 10, Problem 1CQ

It is costly to hold inventory, but inventory can also be useful in a process because

a. adding inventory to a process will shorten the average time a unit spends in a process.
b. adding inventory to a process can help reduce situations in which sales are lost due to uncertain demand.
c. adding inventory to a process is likely to increase quality.
d. adding inventory to a process will increase the profit margin of the item.

Expert Solution & Answer

Summary Introduction

To determine: The advantage of using inventory.

Explanation of Solution

Determine the advantage of using inventory:

Even though holding inventory costs for the firm, it will be useful for the company to avoid stock-outs. Adding inventory helps the firm to manage the situation in which the products go out-of-stock due to uncertain demand. It might lead to loss of sales. Adding inventory helps to avoid this.

Hence, option (b) is correct and options (a), (c), and (d) are incorrect.

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Answer 3

Textbook Question

Chapter 10, Problem 1CQ

It is costly to hold inventory, but inventory can also be useful in a process because

a. adding inventory to a process will shorten the average time a unit spends in a process.
b. adding inventory to a process can help reduce situations in which sales are lost due to uncertain demand.
c. adding inventory to a process is likely to increase quality.
d. adding inventory to a process will increase the profit margin of the item.

Expert Solution & Answer

Summary Introduction

To determine: The advantage of using inventory.

Explanation of Solution

Determine the advantage of using inventory:

Even though holding inventory costs for the firm, it will be useful for the company to avoid stock-outs. Adding inventory helps the firm to manage the situation in which the products go out-of-stock due to uncertain demand. It might lead to loss of sales. Adding inventory helps to avoid this.

Hence, option (b) is correct and options (a), (c), and (d) are incorrect.

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Answer 4

Textbook Question

Chapter 10, Problem 1CQ

It is costly to hold inventory, but inventory can also be useful in a process because

a. adding inventory to a process will shorten the average time a unit spends in a process.
b. adding inventory to a process can help reduce situations in which sales are lost due to uncertain demand.
c. adding inventory to a process is likely to increase quality.
d. adding inventory to a process will increase the profit margin of the item.

Expert Solution & Answer

Summary Introduction

To determine: The advantage of using inventory.

Explanation of Solution

Determine the advantage of using inventory:

Even though holding inventory costs for the firm, it will be useful for the company to avoid stock-outs. Adding inventory helps the firm to manage the situation in which the products go out-of-stock due to uncertain demand. It might lead to loss of sales. Adding inventory helps to avoid this.

Hence, option (b) is correct and options (a), (c), and (d) are incorrect.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

To determine: The advantage of using inventory.

Explanation of Solution

Determine the advantage of using inventory:

Even though holding inventory costs for the firm, it will be useful for the company to avoid stock-outs. Adding inventory helps the firm to manage the situation in which the products go out-of-stock due to uncertain demand. It might lead to loss of sales. Adding inventory helps to avoid this.

Hence, option (b) is correct and options (a), (c), and (d) are incorrect.

Answer 8

Expert Solution & Answer

Summary Introduction

To determine: The advantage of using inventory.

Explanation of Solution

Determine the advantage of using inventory:

Even though holding inventory costs for the firm, it will be useful for the company to avoid stock-outs. Adding inventory helps the firm to manage the situation in which the products go out-of-stock due to uncertain demand. It might lead to loss of sales. Adding inventory helps to avoid this.

Hence, option (b) is correct and options (a), (c), and (d) are incorrect.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

To determine: The advantage of using inventory.

Answer 12

Explanation of Solution

Determine the advantage of using inventory:

Even though holding inventory costs for the firm, it will be useful for the company to avoid stock-outs. Adding inventory helps the firm to manage the situation in which the products go out-of-stock due to uncertain demand. It might lead to loss of sales. Adding inventory helps to avoid this.

Hence, option (b) is correct and options (a), (c), and (d) are incorrect.

Answer 13

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