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It is costly to hold inventory (e.g., storage costs, obsolescence costs, etc.) but inventory can also be useful in a process because….
a. All of the options are correct
b. Adding inventory to a process can increase the capacity of the process.
c. Adding inventory to a process will shorten the average time a unit spends in a process.
d. Adding inventory to a process is likely to increase quality.
e. None of the options are correct
Meanwhile the % of rooms sold for full price compared to the discount would be 100-2X (some people would wait to book gambling a discount would happen). Find the ideal discount %.
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