Which of the following statements about inventory is true?
A)Managing an inventory requires balancing between availability and cost.
B)Inventory includes raw materials and excludes finished goods.
C)Inventory management decisions are limited to the size of the inventory.
D)Managing inventory focuses on order frequency and not the size of reorders.

Question

Quizplus · Accepted Answer

Managing inventory requires balancing between availability and cost. This means that a company needs to have enough inventory to meet demand while also minimizing the costs associated with holding too much inventory. This involves considering factors such as lead times, demand variability, and reorder points.

Which of the Following Statements About Inventory Is True