Post Utme Elizade University 2023 Commerce Question 23

Practice objective / multiple choice question 23 from the 2023 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2023 Commerce Objective / Multiple Choice

Question 23 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.

D. The firm should choose Strategy B because it reduces the risk of overstocking.

Correct Answer

N/A

About This Question

This is Post Utme Elizade University 2023 Commerce Question 23. It is one of the objective questions from the 2023 Post Utme Elizade University Commerce examination.

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