What is the motivation for stockpiling? a. to avoid the unintended transformation of inventory before sale or use, rendering it inappropriate for its original purpose b. to produce at a level rate despite varying demand for the finished goods output c. to avoid delays in order fulfillment due to inadequate supply d. to save money by ordering large amounts that last longer and reduce the frequency of deliveries

Question

Madeleine Carney

Business

5 April, 19:43

What is the motivation for stockpiling? a. to avoid the unintended transformation of inventory before sale or use, rendering it inappropriate for its original purpose b. to produce at a level rate despite varying demand for the finished goods output c. to avoid delays in order fulfillment due to inadequate supply d. to save money by ordering large amounts that last longer and reduce the frequency of deliveries

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Answers (1)

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Jaxson Shaffer · Answer 1

c. to avoid delays in order fulfillment due to inadequate supply

Explanation:

Stockpiling refers to keeping a large amount of inventory to have it avaiable in the future. Usually, companies do this when they think that the products may not be available to purchase it later and they decide to buy a large amount to avoid problems with the supply. According to this, the answer is that the motivation for stockpiling is to avoid delays in order fulfillment due to inadequate supply.

The other options are not right because having a large inventory is not related to be able to produce at a level rate, stockpiling can lead to unintended transformation of inventory and you might save money by ordering a large amount but you will increase your storage costs to maintain the inventory in a warehouse.