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The reasons for holding inventory include all the following EXCEPT:   it ensures employees are motivated....

The reasons for holding inventory include all the following EXCEPT:

  it ensures employees are motivated.
  it allows output rate to remain relatively stable as demand varies predictably over time.
  it takes time to transform input into output.
  it serves as a buffer against demand uncertainty.
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1. A. It ensures employees are motivated

Holding an inventory has no implications ver the motivation of the employees and is a factor of being able to adhere to the demand that requires a steady flow of supply.

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