Which of the following situations is an example of inventory being held as a way to balance supply and demand?

Which of the following situations is an example of inventory being held as a way to balance supply and demand?
A . A manufacturer holds inventory of key components to maintain a level production schedule.
B. A manufacturer of seasonal products builds finished-goods inventory before the peak selling period.
C. A distributor maintains safety stock of slow-moving items at a central distribution center.
D. A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

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Answer: B