Which of the following is most consistent with efficient inventory management?
A) a high inventory turnover ratio
B) a low incidence of production schedule disruptions
C) a high total assets turnover
D) a high inventory turnover ratio; a low incidence of production schedule disruptions; and a high total assets turnover

Question

Quizplus · Accepted Answer

Efficient inventory management involves managing inventory levels to minimize costs while still ensuring that the necessary inventory is available when needed. A high inventory turnover ratio indicates that inventory is being sold and replenished frequently, reducing the risk of excess inventory buildup. A low incidence of production schedule disruptions indicates that the inventory is being managed effectively to ensure that production runs smoothly. A high total assets turnover indicates that the company is generating a high level of sales relative to its assets, which can be an indication of efficient operations overall. Therefore, the combination of a high inventory turnover ratio, low incidence of production schedule disruptions, and a high total assets turnover is most consistent with efficient inventory management.

Which of the Following Is Most Consistent with Efficient Inventory