ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable.
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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: -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: -One important use of inventories in manufacturing is to decouple operations through the use of work in process inventories. The objective of inventory management is to minimize the cost of holding inventory. The two main concerns of inventory control relate to the costs and the level of customer service.
There is 1 question to complete.