You're the production manager for Blue Ribbon Bakery, and you're responsible for managing the inventory of all of the flour, eggs, milk, butter, and other raw materials that go into the company's baked goods. Storing all of these raw materials, some of which require refrigeration, can get expensive so you don't like to go overboard on ordering them, but on the other hand you have to make sure the bakery workers have what they need. Which of the following methods of inventory control do you think will work best at Blue Ribbon?
A) Stock two days' worth of raw materials, and only re-order when the current inventory has been used up
B) Stock only as much raw material as you expect to use in the next three working days to ensure workers have just what they need, and closely monitor the flow of incoming materials to ensure you always have three days' worth
C) Stock as much raw material as you expect to use in the next two weeks to ensure workers have what they need plus a little more
D) Stock as much raw material as possible to ensure that workers always have more than enough to work with
Correct Answer:
Verified
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