Which of the following statements represents the primary function of inventory?
Which of the following statements represents the primary function of inventory?
The primary function of inventory is to make products available while minimizing total carrying cost. Inventory ensures that products are on hand when needed to meet customer demand, reduce downtime in production, and support business operations. While buffering against delivery time, realizing economies of scale, and reducing ordering cost are also important functions of inventory management, these are secondary to ensuring product availability. The primary function focuses on having inventory available to meet demand while minimizing the costs associated with holding that inventory.
Inventory is supposed to act as buffer