Which of the following controls can minimize the threat of stockouts and excess inventory?

Question

Quizplus · Accepted Answer

A perpetual inventory system allows a business to keep accurate and up-to-date records of inventory levels, which helps in minimizing the threat of both stockouts and excess inventory. By knowing the exact inventory levels at any point in time, businesses can make informed decisions about when to order more inventory and how much to order, which helps in preventing stockouts as well as avoiding overstocking.

Which of the Following Controls Can Minimize the Threat of Stockouts