Good inventory policy maintains the _____ necessary stock on-hand.
A)maximum
B)minimum
C)both a and b
D)neither a nor b

Question

Quizplus · Accepted Answer

A good inventory policy should maintain the minimum necessary stock on-hand to avoid excess inventory and associated costs but still fulfill customer demand. Maintaining a maximum stock level can lead to surplus inventory, which increases inventory holding costs and ties up capital that could be used for other business activities.

Good Inventory Policy Maintains the _____ Necessary Stock On-Hand