It is costly to hold inventory eg storage costs


It is costly to hold inventory (e.g., storage costs, obsolescence costs, etc.) but inventory can also be useful in a process because….

a. All of the options are correct

b. Adding inventory to a process can increase the capacity of the process.

c. Adding inventory to a process will shorten the average time a unit spends in a process.

d. Adding inventory to a process is likely to increase quality.

e. None of the options are correct

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Operation Management: It is costly to hold inventory eg storage costs
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