An Inventory System Is a Set of Policies and Controls

question 32

True/False

An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be.

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Definitions:

Performance Rating Factor

A criterion or benchmark used to evaluate the effectiveness, efficiency, or productivity of an employee, system, or process.

Allowance Factor

A multiplier or percentage used to estimate additional costs or time that may not be accounted for in initial calculations.

Work Measurement

The process of determining the time required for a qualified worker to complete a specified task under given conditions.

Time Studies

The process of measuring the time required to perform tasks or work operations as a means of establishing standard times and improving efficiency.