Supply's Objective to Provide an Uninterrupted Flow of Materials,supplies,and Services

question 21

True/False

Supply's objective to provide an uninterrupted flow of materials,supplies,and services to operate the organization is perfectly aligned with the objective to keep inventory investment and loss at a minimum.

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Definitions:

Economic Order Quantity

A formula used in inventory management to determine the optimum order quantity that minimizes total inventory holding costs and ordering costs.

Inventory Control

A control that ensures that inventory is only big enough to meet immediate needs.

Predetermined Point

A specific goal, outcome, or condition that is decided in advance before any action is taken.

Balanced Scorecards

A strategic planning and management system used by organizations to align business activities with the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.