BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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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Detailed explanation-1: -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.
Detailed explanation-2: -Which of the following is NOT a principle reason for holding finished goods inventory? Prevention of production shutdowns due to parts shortages.
Detailed explanation-3: -Filling back-orders through expedited shipping or replenishing stock at higher than wholesale prices are some examples of shortage costs. The most damaging cost of shortage however is a dissatisfied customer and the temporary or permanent loss of sales through insufficient stock levels.
Detailed explanation-4: -Four popular inventory control methods include ABC analysis; Last In, First Out (LIFO) and First In, First Out (FIFO); batch tracking; and safety stock.