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.