Which of the following can be done to reduce inventory?
A) Increase demand variability.
B) Improve forecast accuracy.
C) Increase the number of produced items.
D) Increase order sizes.

Question

Quizplus · Accepted Answer

By improving forecast accuracy, a business can better predict how much inventory is needed, leading to better inventory management and a potential decrease in excess inventory. Increasing demand variability or order sizes can actually lead to an increase in inventory, and increasing the number of produced items may not necessarily result in a decrease in inventory if demand does not increase accordingly.

Which of the Following Can Be Done to Reduce Inventory