The following is TRUE about Inventory: A. Firms increase inventory because more inventory means more movement of materials B. Firms increase inventory because there are price discounts or transportation discounts associated with ordering in larger quantities C. Firms increase inventory because there is an opportunity cost to holding inventory D. Firms increase inventory because more inventory sitting for longer periods of time present more opportunities for damage, errors, rework, theft, and obsolescence E. Firms increase inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures

You receive a memo from the vice president of procurement responding to your query. he writes: “it will be very important to maintain product continuity. we have a large base of devoted customers. we want to make sure that the quality and key characteristics of island knight stay the same through this transition. talk to frank, our consulting professional perfumer, for more information about the cologne. seasonal variations in costs are the single most significant factor in our deciding to go with another supplier, so finding a way to limit that should be the top priority. the overall marginal costs and shipping costs are probably somewhat less significant. you may want to talk to cindy, the product manager for island knight, regarding pricing information about the product.” what is the best action to take next?