The Advantage of Building Up Inventory During the Off Season

Multiple Choice

The advantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is

A) very low inventory costs because no inventory needs to be carried from period to period.
B) much of the expensive capacity would go unused during most months when demand was lower.
C) in the fact that a firm could get by with a smaller,less expensive factory.
D) in the fact that a firm could get by with a larger,more expensive factory.