Inventory Costs at 14% and Habitual Use of Reorder Points

question 37

Multiple Choice

Inventory costs at 14% and habitual use of reorder points are two factors in inventory management that would indicate:

• A) that the practice is ordering drugs in quantities that are too small and must reorder too often
• B) that the practice is ordering too many drugs that are expiring before they can be used
• C) an efficient and well-run inventory program
• D) that too much space and capital are tied up in inventory

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Definitions:

Strategy

A comprehensive plan guiding resource allocation to achieve long-term organization goals.

Lack of Participation Error

A situation in decision-making processes where not all relevant parties are included, which can lead to suboptimal outcomes and reduced acceptance of decisions.

Strategic Planning

The process of defining an organization's strategy and making decisions on allocating its resources to pursue this strategy.

Key Persons

Individuals who hold critical importance within an organization or project, often due to their skills, knowledge, or position.