Holding large inventories provides protection against stock-outs and lost sales.

Answer the following statement true (T) or false (F)


True

Holding large inventories provides protection against stock-outs and lost sales. It reduces the chance of stock-outs and lost sales due to supply disruptions or unexpected surges in demand. See 17-2: What Do Operations Managers Do?

Business

You might also like to view...

Which of the following is NOT an example of fraud in the acquisition and payment cycle?

a. Theft of inventory by employees. b. Inventory shrinkage. c. Large manual adjustments to inventory accounts. d. Excess inventory because of a production slowdown.

Business

Small expenditures for what ordinarily are considered capital expenditures frequently are treated as revenue expenditures

Indicate whether the statement is true or false

Business

Lead time minus production time is equal to

a. idle time. b. storage time. c. non-value-added time. d. value-added time.

Business

According to Warren Bennis, a distinction between leaders and managers is that the leader _______, but the manager administrates.

Fill in the blank(s) with the appropriate word(s).

Business