Question

Which of the following is (are) reason(s) to carry inventory? To provide a safeguard for variation in raw material delivery time To take advantage of economic purchase-order size To maintain independence of operations To meet variation in product demand All of the above are reasons to carry inventory.

Answer 1

Answer: To meet variation in product demand

Explanation: Taking an inventory by an organization is done to keep record of all the items in their warehouse.

Inventory record is carried out by organization for them to know the products they have in their store and to know the proportion to which the products are present.

Taking inventory, helps firms to meet urgent supply needs that would otherwise have been impossible.