When Maintaining Appropriate Inventory Level, a Purchasing Manager Should ________

question 174

Multiple Choice

When maintaining appropriate inventory level, a purchasing manager should ________.

• A) keep the inventory level low, to ensure that the firm's money is not being unwisely invested in excess resources
• B) ensure that all orders could be filled quickly, eliminating the need for back orders due to stockouts
• C) implement the production plan to acquire the desired amount of finished goods available on time at a low cost
• D) maintain adequate amount of inventory on hand at desired times and at a favorable price

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Definitions:

Investment Model

A theory in social psychology that explains how commitment in relationships is influenced by satisfaction, alternatives, and investment.

Relationship

A connection, association, or involvement between individuals, which can vary in terms of closeness, duration, and type.

Frontal Lobes

The portion of the cerebral cortex behind the forehead, involved in personality, intelligence, and the control of voluntary muscles.

Hippocampus

The structure in the limbic system that has a special role in the storage of memories.