The "Dollar Days" Inventory Measurement Can Be Used in Purchasing

question 92

True/False

The "dollar days" inventory measurement can be used in purchasing to discourage large work-in-process and producing earlier than is needed.

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Definitions:

Just-In-Time

An inventory management strategy that increases efficiency and decreases waste by receiving goods only as they are needed in the production process, reducing inventory costs.

Import Duties

Taxes imposed by a government on goods imported from other countries, meant to protect domestic industries and generate revenue.

Global Procurement

The process of sourcing goods and services from the global market to exploit global efficiencies such as lower cost, enhanced quality, and better supply dynamics.

Hospitality Environment

The setting or atmosphere provided by businesses in the hospitality industry, such as hotels, restaurants, and bars, aimed at providing services for guests or visitors.