What Is the Goal of Inventory Control

question 63

Multiple Choice

What is the goal of inventory control?

• A)to minimize inventory levels while maintaining an adequate supply to meet customer demands
• B)to maximize inventory levels to prevent any possibility of stock-outs
• C)to determine order timing and order quantity
• D)to integrate JIT to reduce risks of obsolescence, theft, and damage

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Definitions:

Pull Method

A manufacturing and inventory strategy where production is based on customer demand rather than forecasting.

Work-In-Process Inventory

Goods that are in various stages of the production process but are not yet completed.

Non-Value-Added Cost

Expenses that do not contribute to the value or functionality of a product or service, often targeted for reduction or elimination.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including the product or service's potential customers and competitors.