BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Below are the importance of inventory control, except;
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How to maximize costs involved, which could directly increase production
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How much inventory to be ordered to replace sold inventory
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When to order inventory to prevent excess or deficiency in storage
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What type of inventory is suitable for the production process
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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: -Inventory control helps connect the upstream activities of purchasing and manufacturing to the downstream activities of sales and product demand to prevent bottlenecks, speed up processes, identify slow-moving or obsolete items, and even help evaluate suppliers.
Detailed explanation-3: -Inventory control helps the business in knowing the shortfall and quantities to be ordered considering the net stock available. Thus, it ensures that enough stocks are maintained to meet customer needs, at any point in time.
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