Which of the following inventory functions does not involve end products sold to customers?a.fluctuation inventoryb.anticipation inventoryc.MRO inventoryd.speculative inventorye.lot-size inventory
Question
Which of the following inventory functions does not involve end products sold to customers?a.fluctuation inventoryb.anticipation inventoryc.MRO inventoryd.speculative inventorye.lot-size inventory
Solution
The correct answer is c. MRO inventory.
MRO stands for Maintenance, Repair, and Operations. This type of inventory is not directly involved in the production of goods and services that are sold to customers, but rather, it supports the production process. MRO inventory includes items such as cleaning supplies, safety equipment, office supplies, and other materials used in the maintenance and operation of the business. These items are not sold to customers, but are necessary for the business to function.
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