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Supply Chain Manager Exam Prep

Category - Inventory

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Why must firms decide which inventory to build and which to not?

Due to limited demand.
Due to limited production.
Due to access demand season.
Due to limited labor.

Explanation

Answer: C - When most of the products a firm produces have the same peak demand season, a firm must then decide which inventory to build during the off-season. The idea is to build products during the off-season that have more predictable demand because there is less to be learned about their demand by waiting.

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Supply Chain Manager Exam Prep

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Supply Chain Manager Exam Prep

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