How can inventory be used as a strategic ...

[sjones]

How can inventory be used as a strategic tool?

Question 2

_____ is the model that provides an explanation of how, when, and why attitudes predict consumer behavior.
 A) Weber's law
  B) The body feedback theory
  C) Hofstede's law
  D) The prospect theory
  E) The theory of reasoned action

[juiceman1987]

Answer to Question 1

International inventories can be used by the international corporation as a strategic tool in dealing with currency valuation changes or hedging against inflation. By increasing inventories before an imminent devaluation of a currency, instead of holding cash, the corporation may reduce its exposure to devaluation losses. Similarly, in the case of high inflation, large inventories can provide an important inflation hedge. In such circumstances, the international inventory manager must balance the cost of maintaining high levels of inventories with the benefits accruing to the firm from hedging against inflation or devaluation. It is important to remember that inventory management must still fall in with the overall corporate market strategy.

Answer to Question 2

E

[sjones]

Excellent

[alvinum]

TYSM