Which inventory function specifically is designed to allow the company to maintain a level production strategy?a.Lot-size inventoryb.Fluctuation inventoryc.Transportation inventoryd.Speculative inventorye.Anticipation inventory
Question
Which inventory function specifically is designed to allow the company to maintain a level production strategy?a.Lot-size inventoryb.Fluctuation inventoryc.Transportation inventoryd.Speculative inventorye.Anticipation inventory
Solution
The inventory function specifically designed to allow the company to maintain a level production strategy is the Anticipation inventory. This type of inventory is used to absorb the uneven rates of demand or supply. This strategy is used when the demand for a product is predictable, allowing the company to produce goods in anticipation of demand and maintain a steady production rate.
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