The Management at Barks-A-Million Is Considering a New Inventory Control

question 34

Multiple Choice

The management at Barks-a-Million is considering a new inventory control system.The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials - resulting in markdowns and high carrying costs.The new system will focus on ensuring that orders are placed with sufficient lead time to prevent stockouts by using

• A)a just-in-time inventory system.
• B)the economic order quantity.
• C)materials requirements planning.
• D)a reorder point.

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Definitions:

Promissory Note

A signed document containing a written promise to pay a stated sum to a specified person at a specified date or on demand.

Missing Value

The unavailability or lack of specific information that is expected to be in a dataset, record, or analytical equation.

Promissory Note

A legal document in which the writer promises to pay a specified sum of money to a designated party at a future date or on demand.

Simple Interest

A method to calculate the interest charged on a loan, based on the original principal amount, the rate of interest per period, and the number of time periods.