An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level?

Question

Quizplus · Accepted Answer

Minimum inventory level should be determined by considering consumption rate as it indicates the frequency at which the item is used or sold, thus ensuring sufficient inventory to meet demand. Qualified supplier, ABC classification, and number of sales transactions may affect procurement and ordering decisions, but they are not relevant to determining minimum inventory levels.

An Item Must Be Added to Inventory to Support New