It is costly to hold inventory, but inventory can also be useful in a process because a.
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It is costly to hold inventory, but inventory can also be useful in a process because
a. Adding inventory to a process will shorten the average time a unit spends in a process.
b. Adding inventory to a process can help reduce situations in which sales are lost due to uncertain demand.
c. Adding inventory to a process is likely to increase quality.
d. Adding inventory to a process will increase the profit margin of the item.
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Related Book For
Operations Management
ISBN: 9781260547610
2nd International Edition
Authors: Gerard Cachon, Christian Terwiesch
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