Question

In: Operations Management

The objective of inventory management is to

The objective of inventory management is to

  • A. strike a balance between inventory investment and customer service.
  • B. take advantage of quantity discounts.
  • C. decouple various parts of the production process.
  • D. provide a selection of goods for anticipated customer demand.

 

Solutions

Expert Solution

The main objective of inventory management is to maintain a balanced inventory at the warehouse at an acceptable level. This would avoid excessiveness or shortage of inventory in the warehouse. This system reduces the carrying cost of inventory and ensures the supply of resources in order to maintain continuity in the finished products


Answer A: Strike a balance between inventory investment and customer service.

 

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