Which of the following statements about inventory management is correct?
A) The economic ordering quantity is the quantity at which the total cost of carrying (holding) inventory is minimized.
B) A firm should always order inventory in amounts sufficient to take advantage of quantity discounts.
C) Safety stock is additional inventory that a firm carries to guard against unexpected changes in sales.
D) To most efficiently manage its inventory, a firm should not reorder raw materials until it has no products remaining in inventory.
E) Outsourcing is the practice of arranging for a supplier to deliver raw materials at the time they are needed in the production process.
Correct Answer:
Verified
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