Question $1(1$ point$)$

Inventory buffers are recognized as important in supply chains, and careful analysis can determine where they would be most useful or might increase costs without adding value.

$$ True

False

Question $2(1$ point$)$

Safety stocks are held to reduce the risk of stockouts caused by delayed deliveries, unexpected increases in demand, or other disruptions in the supply chain.

$$ True

False

Question $3(1$ point$)$

Inventory storage enables a firm to buy and produce in economic lot sizes without having to match purchases or production with short$-$term demand, resulting in periodic order cycles.

$$ True

False

Question $4(1$ point$)$

Inventory can be used to hedge against price increases when a firm suspects a substantial price increase and purchases larger than normal amounts to beat the increase.

$$ True

$$ False