Because Managing Inventory Is Just Like Managing Any Other Investment

question 294

Multiple Choice

Because managing inventory is just like managing any other investment, decisions about the level of inventory should be guided by

• A) the value of the inventory.
• B) the effect of inventory levels on sales.
• C) a cost-benefit analysis.
• D) the effect of inventory levels on customer relations.

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Definitions:

High Risk

Pertains to the potential for significant loss or failure, often used in finance, investment, and project management to describe ventures with uncertain outcomes.

Distinctives

Features or characteristics that clearly differentiate one entity, product, or service from others.

Strategic Sourcing Process

A methodical approach to procurement that focuses on developing supply chains for critical goods and services to reduce costs and improve quality.