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

question 2

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 these costs are minimized.The new inventory control system will likely employ

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

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Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Economize

The act of reducing waste or optimizing the use of resources to save money or achieve greater efficiency.

Affluent

Describes individuals, communities, or nations with a high level of wealth and income, typically measured by the standard of living and purchasing power.

Production Possibilities Curve

A model that shows the maximum combination of goods or services that can be produced with a fixed amount of resources.