Which of the Following Is True of Random Stocking

question 167

Multiple Choice

Which of the following is true of random stocking?

• A) Because items are stocked randomly, accurate inventory records are not necessary.
• B) Its results always minimize handling costs.
• C) Products have their own permanent storage spot.
• D) Each pick can be of only one product.
• E) It maintains accurate records of existing inventory and its locations.

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Definitions:

Distribution Systems

Networks involved in moving a product or service from the supplier to the customer, covering warehousing, transportation, inventory management, and delivery.

Outsourcing

The practice of hiring third parties to perform services, handle operations or provide goods that are either difficult to manage or outside the company's expertise.

Key Success Factors

Critical elements or factors that contribute significantly to the achievement of organizational goals and objectives.

Online Auctions

A virtual marketplace where buyers bid for products or services offered for sale over the internet, with the highest bid at auction close winning the item.