The "Redline Method" That Is Used in Inventory Management Is

question 38

Multiple Choice

The "redline method" that is used in inventory management is a:

• A)policy of drawing a red line around the firm's location to determine from which suppliers it should purchase raw materials.
• B)restriction imposed on the amount of inventory a company that uses a just-in-time inventory system can order.
• C)minimum credit score (hurdle) that a customer must possess to purchase inventory on credit from the selling firm.c
• D)method of controlling inventories by drawing a red line around the inside of a bin.
• E)method of controlling receivables by drawing a red line on invoices of companies that normally pay late.

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