Effective inventory management should lead to which of the following?

Question

Quizplus · Accepted Answer

Effective inventory management should lead to higher inventory turns, which means a higher rate of sales relative to the amount of inventory held, leading to lower storage costs, reduced inventory obsolescence, and improved cash flow. Higher product quality and lower cost of capital are also important goals of inventory management, but they may not necessarily be achieved solely through inventory management. Elimination of inventory cycle counting is not necessarily a desirable goal, as cycle counting is a key tool for ensuring accuracy and visibility in inventory management.

Effective Inventory Management Should Lead to Which of the Following