ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to minimize inventory turnover
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to carry insufficient inventories
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to maximize inventory management
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to maximize inventory turnover
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Detailed explanation-1: -Through the efficient Management of Inventory of the wealth of owners will be maximised. To reduce the requirement of cash in business, inventory turnover should be maximised and management should save itself from loss of production and sales, arising from its being out of stock.
Detailed explanation-2: -Eliminate products with lower turnover ratios to improve the company’s overall inventory turnover. Talk with your vendors to regularly review purchase prices and ask for discounts or price reduction when they are quoting for your inventory stock. This way you can reduce the cost of your inventory.
Detailed explanation-3: -To keep inactive, waste, surplus, scrap and obsolete items at the minimum level. To minimize holding, replacement and shortage costs of inventories and maximize the efficiency in production and distribution. To treat inventory as investment which is risky.