BUISENESS MANAGEMENT
INVENTORY CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What items should be stocked?
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When should an order be placed to replenish inventory?
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How much should be ordered in each replenishment?
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all of these
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Detailed explanation-1: -So, an effective inventory management system needs to encompass purchasing, inventory management, warehousing, sales orders, order fulfillment, distribution and customer service management. Purchasing is a very important component of an inventory information system. Too little inventory results in out of stocks.
Detailed explanation-2: -An effective inventory management system allows you to react quickly to market demands and ensures you don’t have too much or too little stock – both highly undesirable scenarios. Strategic inventory management makes your whole organization more efficient, but it’s an ongoing challenge for most companies.
Detailed explanation-3: -The steps in the stock handling process include receiving goods, checking them, marking the goods with information, and delivering them. Inventory is one of the most costly parts of operations for many businesses.