ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One important use of inventories in manufacturing is to decouple operations through the use of work in process inventories.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Decoupling inventory is the process of setting aside extra parts or raw materials to ensure there aren’t any delays or disruption in the production of finished goods in the event of a supply shortage or machinery breakdown.
Detailed explanation-2: -The management of inventory is necessary for any company so that excess stock is not stored at the company while simultaneously ensuring demand for customers is met. The optimal balance, however, is often achieved through properly planned and managed inventory.
There is 1 question to complete.