Firms with higher levels of perishable product, tend keep a higher Days-of-Supply to prepare for unexpected demand.
True or False
Expert Answer
False
Perishable products have a short shelf life, which makes it costly and risky to store high inventory levels of such products. If there is not enough demand, then the leftover inventory has to be disposed off at a loss, sometimes by even incurring additional cost of transportation. Therefore, perishable products require a tighter inventory control and as small order quantity as possible to just the meet the demand. In fact, the preferred strategy is to look for vendors,
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