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The "Redline Method" That Is Used in Inventory Management Is

Question 35

Multiple Choice

The "redline method" that is used in inventory management is a:


A) policy of drawing a red line around the firm's location to determine from which suppliers it should purchase raw materials.
B) restriction imposed on the amount of inventory a company that uses a just-in-time inventory system can order.
C) minimum credit score (hurdle) that a customer must possess to purchase inventory on credit from the selling firm.c
D) method of controlling inventories by drawing a red line around the inside of a bin.
E) method of controlling receivables by drawing a red line on invoices of companies that normally pay late.

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