MANAGEMENT

Detailed explanation-1: -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.

Detailed explanation-2: -True, inventory control is one part of minimizing holding costs and potential stock-outs.

Detailed explanation-3: -The objective of inventory management is to minimize the cost of holding inventory. The objective of inventory management is to allow satisfactory customer service while keeping costs down. A retail store that carries twice as much inventory as its competitor will provide twice the customer service level.

Detailed explanation-4: -The objectives of inventory management are to provide the desired level of customer service, to allow cost-efficient operations, and to minimize the inventory investment.

Detailed explanation-5: -The objective of good inventory management is to determine: The optimum re-order quantity – how many items should be ordered when the order is placed for all material inventory items.