Which of the following is correct? Adding inventory increasesGroup of answer choicesInventory riskSupply chain delaysReceivables riskSupply chain disruptions

Adding inventory increases inventory risk.

Here's why:

1. Inventory risk refers to the potential for a loss due to a decrease in the value of inventory. This can occur due to factors such as obsolescence, changes in demand, damage, or theft.

2. When a company adds more inventory, it is increasing the amount of goods it has on hand. This means there is a greater amount of goods that could potentially become obsolete, get damaged, or stolen, thus increasing the inventory risk.

3. Supply chain delays and disruptions can indeed be caused by various factors, but adding inventory is not directly one of them. In fact, companies often add inventory to buffer against such delays and disruptions.

4. Receivables risk refers to the risk that a company will not be able to collect the money owed to it by its customers. This is not directly affected by the amount of inventory a company has.

So, out of the given options, adding inventory increases inventory risk.