COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To provide a selection of goods for anticipated demand
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To decouple or seperate various parts of the production process
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The objective of inventory management is to strike a balanace between inventory investment and customer service
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Detailed explanation-1: -The objective of inventory management is to strike a balance between inventory investment and customer service. You can never achieve a low-cost strategy without good inventory management. All organizations have some type of inventory planning and control system.
Detailed explanation-2: -The objectives of inventory management are to provide the desired level of customer service, to allow cost-efficient operations, and to minimize the inventory investment.
Detailed explanation-3: -Inventory management helps companies identify which and how much stock to order at what time. It tracks inventory from purchase to the sale of goods. The practice identifies and responds to trends to ensure there’s always enough stock to fulfill customer orders and proper warning of a shortage.
Detailed explanation-4: –To supply the required materials continuously: The main objective of inventory management is to maintain the required inventory to run the production and sales process smoothly.