Question

When a firm engages in extended storage they normally are: a) Holding inventory in excess of typical replenishment requirements b) Speculating that inventory cost will decrease c) Engaged in customization d) Performing value added services.

Answer 1

The correct answer is a) Holding inventory in excess of typical replenishment requirements.

Step-by-step explanation:

Prolonged storage determines excess inventory in a given time, which is a great challenge due to having enough space to receive all the merchandise and all the necessary process to guarantee its care. The companies that carry out these tasks generally have the necessary experience to insure the merchandise until the moment it must be removed from the warehouse or storage.