Chapter 30, Problem 3PS

Inventory* True or false?

1. a. Just-in-time inventory systems reduce the cost of managing inventory to zero.
2. a. Companies hold larger inventories of finished goods when customer demand fluctuates unpredictably.
3. b. Other things equal, higher real interest rates should lead to lower inventories.
4. c. Other things equal, lower costs of storage should lead to lower inventories.