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Why is it impractical to operate a firm without any inventory or storage?
  • a)
    Because production and transportation are perfectly reliable.
  • b)
    Because demand for products is always known.
  • c)
    Because maintaining inventories can lower production costs.
  • d)
    Because storage is a necessity for any business.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Why is it impractical to operate a firm without any inventory or stora...
It is impractical to operate a firm without any inventory or storage because maintaining inventories can lower production costs. Without inventories, production would have to be instantly responsive, which is not practical or cost-effective. Storage allows for economical production lot sizing and sequencing, leading to cost savings.
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Why is it impractical to operate a firm without any inventory or storage?a)Because production and transportation are perfectly reliable.b)Because demand for products is always known.c)Because maintaining inventories can lower production costs.d)Because storage is a necessity for any business.Correct answer is option 'C'. Can you explain this answer?
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