ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following company objectives are in conflict?
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maximum customer service and low-cost plant operation
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low-cost plant operation and cash flow
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maximum inventory investment and customer service
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high cash flow and profitability
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Explanation:
Detailed explanation-1: -Ordering costs are considered expenses related to placing orders for new inventory. Transportation, shipping fees, inspection fees, and other expenses for conveying the order come under it. These costs are generally fixed in nature.
Detailed explanation-2: -The overall objective of inventory management is balancing the cost of inventory against the cost of providing reasonable levels of customer service.
There is 1 question to complete.