ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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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Detailed explanation-1: -To maintain minimum working capital as required for operational and sales activities. To optimize various costs indulged with inventories like purchase cost, carrying a cost, storage cost, etc. To keep material cost under control as they contribute to reducing the cost of production.
Detailed explanation-2: -The just-in-time (JIT) inventory system minimizes inventory and increases efficiency. JIT production systems cut inventory costs because manufacturers receive materials and parts as needed for production and do not have to pay storage costs.
Detailed explanation-3: -Inventory is the amount of stock a firm has of its own products. Managing inventory levels is extremely important for businesses for to maximise efficiency levels. Having either too much or too little inventory can compromise the effectiveness of the business.