The Primary Goals of Inventory Management Do Not Include

question 120

Multiple Choice

The primary goals of inventory management do not include:

• A)maintaining a sufficient quantity of inventory to keep customers satisfied.
• B)maintaining sufficient quality of inventory to keep customers satisfied.
• C)minimizing the costs associated with maintaining inventories.
• D)maintaining a large inventory for long periods.

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Definitions:

Fiduciary Responsibility

A legal obligation requiring an individual or organization to act in the best interest of another party, typically in financial matters.

Prudent Investor Rule

Prudent Investor Rule is a legal guideline for fiduciaries that mandates investment strategies should be made as a prudent investor would, considering risk, return, diversification, and the objectives of the trust or beneficiary.

Active Portfolio Management

A strategy where managers make specific investments with the goal of outperforming an investment benchmark index.

Passive Strategy

An investment approach that involves holding a diversified portfolio to match the performance of a market index over time, minimizing buying and selling actions.