Question: The following is TRUE about Inventory: A. Firms decrease inventory because there are price discounts or transportation discounts associated with ordering in larger quantities B.

The following is TRUE about Inventory:

A. Firms decrease inventory because there are price discounts or transportation discounts associated with ordering in larger quantities

B. Firms decrease inventory because there is a risk of interruptions due to unreliable productivity and quality.

C. Firms decrease inventory because there is a risk of significant and unpredictable fluctuations in downstream demand

D. Firms decrease inventory because there is an opportunity cost to holding inventory

E. Firms decrease inventory because there is a risk of interruptions in the flow of components/materials from upstream suppliers

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