Krisp Bite, a breakfast cereal manufacturer, has a storage facility to store sugar, corn, wheat, oats, rice, and barley before they are processed into cereal. In the context of operations management, Krisp Bite uses the storage facility to store its

A) throughput

B) information systems

C) contingency systems

D) inventory

D) inventory

Explanation:

It is called inventory, (as the sugar, corn wheat, oats, rice and barley are direct materials not processed they are termed as inventory).

Choice D is the correct answer.

Choice A is not correct because throughput means output of something after processing.

Information system means systems relating to or showing information.

The sugar, corn wheat, oats, rice and barley are the raw direct materials used in the production of the cereals.