Question

Shane Motors keeps its automobile parts in a storage facility near its assembly and manufacturing plant. In the context of operations management, Shane Motors uses the storage facility to hold its _____.

Answer 1

Answer: Inventory

Inventory consists of the sum total of goods in the store and the warehouse. Thus inventories include finished goods and raw material.

Inventories are crucial to a firm's operations because it supplies raw material to the production line and also stores finished goods to meet customers' demands.