ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The objective of inventory management is to minimize the cost of holding inventory.
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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: -T/F The objective of inventory management is to minimize holding costs. False. The objective of inventory management is to minimize total cost, which includes ordering costs and sometimes purchase costs (e.g. quantity discount models).
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: -The objectives of inventory management are as follows: To ensure a continuous supply of materials and stock so that production should not suffer at the time of customers demand. To avoid both overstocking and under-stocking of inventory.
There is 1 question to complete.