Effective use of inventories would be implied from which of the following?
A)High number of back orders
B)Low inventory turnover
C)High numbers of days of inventory
D)Understocking and overstocking of inventory items
E)The right goods in sufficient quantities

Question

Quizplus · Accepted Answer

Effective use of inventories means having the right goods in sufficient quantities to meet customer demand without overstocking or understocking. High numbers of back orders (A) indicate insufficient inventory levels, low inventory turnover (B) and high numbers of days of inventory (C) suggest excessive inventory levels, and understocking and overstocking of inventory items (D) signify poor inventory management.

Effective Use of Inventories Would Be Implied from Which of the Following