Question

Which of the following can the owners of small businesses do to cope with variations in demand?

A. Avoid carrying complementary products, such as winter and summer items
B. Use inventory buildups to smooth out operations
C. Avoid subcontracting production
D. Hire permanent workers during peak periods

Answer 1

Answer:B

Step-by-step explanation:

By building up inventory during periods when demand is low can help the business when demand is high because they can just sell the stored inventory.

The owner of the business should however not store too much inventory if the goods are can expire quickly of can get damaged quickly.

The owner should use the inventory ratios to see if he is storing enough not to make a loss.