Question:
Give an example for the following reason of holding inventory: Stabilise manufacturing:
Author: liv daAnswer:
To meet the increased demand in summer, the manufacturer produces ice cream throughout the year and maintains a stockpile in frozen storage. By doing so, they can ensure they have sufficient inventory to fulfill customer orders during the peak season without needing to ramp up production dramatically or risk shortages. T
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Alternative answers:
An electronics manufacturer maintains an inventory of electronic components like capacitors and resistors. This helps them to smooth out production fluctuations caused by changes in customer demand or unforeseen delays in the supply chain.