To achieve large inventory savings,you need ______.
A)an annual replenishment system
B)large shipments of purchased materials and components
C)frequent shipments of purchased materials and components
D)a smaller number of units to be produced and sold

Question

Quizplus · Accepted Answer

Frequent shipments of purchased materials and components can help reduce inventory costs by keeping only the necessary amount on hand and ordering more as needed, rather than keeping a large stockpile of materials. This can help avoid waste and reduce the cost of holding excess inventory. An annual replenishment system or large shipments could potentially lead to excess inventory and higher storage costs. A smaller number of units to be produced and sold may not necessarily lead to inventory savings, as it depends on the ordering and production strategies used.

To Achieve Large Inventory Savings,you Need ______