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

question 20

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,which will focus on forecasting demand for their products,will likely employ

• 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:

Correlated

When two or more variables are related in some way, with changes in one variable associated with changes in another.

Obesity

A medical condition in which excess body fat has accumulated to an extent that it may have a negative effect on health, leading to increased risk of various diseases.

Association

The connection or linkage between two concepts, items, or processes, often studied in psychology regarding memory and learning.

Causation

The action of causing something, establishing a relationship where one event is the result of another.