ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When demand exceeds supply the organisation will loose sales due to unavailability of the products.
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True
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False
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None of the above
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None of the above
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Explanation:
Detailed explanation-1: -Four popular inventory control methods include ABC analysis; Last In, First Out (LIFO) and First In, First Out (FIFO); batch tracking; and safety stock.
Detailed explanation-2: -Shortage costs are those costs incurred by an organization when it has no inventory in stock. These costs include the loss of business from customers who go elsewhere to make purchases, the loss of the margin on sales that were not completed, and overnight shipping costs to acquire goods that are not in stock.
Detailed explanation-3: -Which of the following statements is not a common reason for holding inventory in organisations? To facilitate availability of a variety products for the customer.
There is 1 question to complete.