The Management at Sad Clown Pajamas,an Internet-Based Wholesaler,is Considering a New

question 36

Multiple Choice

The management at Sad Clown Pajamas,an Internet-based wholesaler,is considering a new inventory control system.The current system is inadequate because it results in stockouts that interrupt production and excess stocks of some materials that result in markdowns and high carrying costs.The new system,which will focus on reducing or completely eliminating carrying costs,will employ

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

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