Question: Why must companies carry inventory?

Why must companies carry inventory?

Step by Step Solution

★★★★★

3.24 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To meet normal demand to buffer against sh... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Operations Management Questions!

Q:

Multiple Choice Questions 1. Which of the following is not a true statement? a. Testate refers to a person having a valid will. b. The laws of descent convey personal property if an individual dies...

Q:

Why must inventory transfers to related companies be eliminated in preparing consolidated financial statements?

Q:

Attempts to achieve off-balance-sheet financing. (Adapted from materials by R. Dieter, D. Landsittel, J. Stewart, and A. Wyatt.) Shiraz Company wants to raise $50 million cash but, for various...

Q:

Billybang Pty Ltd imports surf shorts and sells them to department stores throughout Australia. At 1 July 2017 opening inventory comprised 10 units @ $22.00 each. Throughout the quarter ended 30...

Q:

Billybang Pty Ltd imports surf shorts and sells them to department stores throughout Australia. At 1 July 2021 opening inventory comprised 10 units @ $22.00 each. Throughout the quarter ended 30...

Q:

In order to cushion against uncertainties in demand companies carry _______ inventory: Group of answer choices Safety stock MRO Anticipation inventory Pipeline inventory Cycle stock

Q:

In order to cushion against uncertainties in demand, companies carry inventory: Cycle stock Maintenance, Repair and Office supplies (MRO) Safety stock Pipeline inventory The costs of being out of...

Q:

In order to hedge against demand uncertainty, companies carry _ _ _ _ _ _ _ _ inventory. Group of answer choices cycle stock anticipation MRO safety stock pipeline

Q:

Companies carry inventory for several reasons, including _ _ _ _ _ _ _ _ . Group of answer choices balancing supply and demand covering lead time demand operational independence buffer uncertainty...

Q:

Why do companies carry inventory? Choose the response from the following options that best answers the question. Question 4 options: To increase company assets All of the other answers ( except for...

Q:

Assume that you are a Harvard-graduated analyst at a successful business called "Project X." You are reviewing the companys income statement and balance sheet below. The business has been around for...

Q:

Download the daily stock prices of several stocks that belong to the index that you downloaded in Exercise 8. Calculate their returns and compute their 1-step-ahead volatility forecast by...

Q:

Chapter 4 Problem 5: U.S. Steel manufactures steel tubes for multiple industrial and construction applications. If the company invested $4.4 million in a process that resulted in profits of $740,000...

Q:

Adf. F(with cf. is said to be in the domain of attraction (resp. domain of normal attraction) of a (stable) distribution G (with cf. o) if for suitable constants A., B. (resp. for some A, and B, B)...

Q:

NorthStar Airlines runs daily flights from Halifax to Montreal. The planes hold 60 passengers and cater to the business traveler with comparable business rates. The recent economic downturn has...

Q:

FlyUs Airlines is unhappy with the number of empty seats on its Sudbury to Toronto flight. To remedy the problem, the airline is offering a special discounted rate of $89 instead of the normal $169,...

Q:

Calgary Airlines routinely overbooks its flight from Calgary to Vancouver. Overbooking discounted seats can be expensive because providing a bumped passenger with a last-minute flight on a competing...

Q:

E2-6 Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6] Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150...

Q:

Which of the following statements is CORRECT? a. Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer. b. Corporations...

Q:

Note: 1. Write down your answers of Question 3 and 4 in this worksheet. 2. Answer the questions of "Participation Task 9 (PT9)" (5 MC Questions)" in the Moodle. Question 3 NewBank started its first...