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1. It is costly to hold inventory, but inventory can also be useful in a process because: a. adding inventory

1. It is costly to hold inventory, but inventory can also be useful in a process because: a. adding inventory to a process will shorten the average time a unit spends in a process. b. adding inventory to a process canreduce situations in which sales are lost due to uncertain demand. c. adding inventory to a process is likely to increase quality. d. adding inventory to a process will increase the profit margin of the item. 2. A delivery truck from a food wholesaler has just delivered fresh meat and produce to a local restaurant. This meat and produce would be categorized as which type of inven- tory by the restaurant

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