Post Utme Elizade University 2023 Commerce Question 19

Practice objective / multiple choice question 19 from the 2023 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2023 Commerce Objective / Multiple Choice
Question 19 POST_UTME_ELIZADE_UNIVERSITY • 2023 • COMMERCE • objective

A firm is considering two different inventory management strategies. Strategy A involves holding a large inventory of raw materials and finished goods. Strategy B involves holding a small inventory of raw materials and finished goods. Which of the following is a correct statement about the choice between these two strategies?

Answer Options

A. The firm should choose Strategy A because it involves holding a large inventory of raw materials and finished goods.
B. The firm should choose Strategy B because it involves holding a small inventory of raw materials and finished goods.
C. The firm should choose Strategy A because it reduces the risk of stockouts.
Correct Answer D. The firm should choose Strategy B because it reduces the risk of overstocking.
Correct Answer
D
Correct Option:
The firm should choose Strategy B because it reduces the risk of overstocking.

About This Question

This is Post Utme Elizade University 2023 Commerce Question 19. It is one of the objective questions from the 2023 Post Utme Elizade University Commerce examination.

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