An effective inventory management system ______.
A)will produce reliable demand forecasts and estimates of lead times and inventory costs
B)will attempt to reprice items such that inventory of finished products is minimized
C)will use the push system in some seasons and pull system in other seasons to balance demand and supply
D)will help identify the right markets for its products

Question

Quizplus · Accepted Answer

An effective inventory management system should produce reliable demand forecasts and estimates of lead times and inventory costs. This helps a business to identify when to order more inventory and how much to order, thus reducing the risk of overstocking or understocking. Repricing items or using push/pull systems can be part of the system, but these tactics alone do not constitute an effective inventory management system. Identifying the right market for the products is also important, but it is not directly related to inventory management.

An Effective Inventory Management System ______