Which of the following situations is an example of inventory being held as a way to balance supply and demand?
Which of the following situations is an example of inventory being held as a way to balance supply and demand?
A manufacturer of seasonal products builds finished-goods inventory before the peak selling period as a way to balance supply and demand. This practice ensures that there is sufficient stock available to meet the increased demand during the peak period, thereby balancing the fluctuations in demand by producing and holding inventory in advance.
correct answer is A?
Why is it B? A manufacturer producing inventory right before its peak doesn't explain "holding" inventory. Also, why not C?