Question

Which inventory method involves a company keeping large amounts of inventory on hand in order to minimize the probability of selling out of product?
Responses

HIFO method
HIFO method

Just-in-case method
Just-in-case method

Periodic inventory
Periodic inventory

LIFO method

Answer 1

The inventory method that involves a company keeping large amounts of inventory on hand to minimize the probability of selling out of product is known as the **Just-in-case method**. This approach contrasts with just-in-time inventory strategies, which aim to keep minimal stock on hand to reduce holding costs.