Which of the following statements is correct about obtaining a high level of accuracy for inventory records?
A)It will usually lead to a reduction of inventory levels.
B)It is not necessary to achieve because of safety stocks and safety lead-time.
C)It will result in savings that are likely to be small and difficult to determine.
D)It is probably impossible to achieve and will be costly to obtain.

Question

Quizplus · Accepted Answer

In a level strategy, inventories are built up in anticipation of future demand or backlogs are carried over from high to low demand periods. This ensures a high level of accuracy for inventory records and, due to low changing capacities, usually leads to a reduction in inventory levels as well.

Which of the Following Statements Is Correct About Obtaining a High