Effective management of inventory begins with:
A)developing an accurate sales forecast.
B)setting realistic inventory turnover objectives.
C)determining what level of safety stock to maintain.
D)establishing purchasing procedures.

Question

Quizplus · Accepted Answer

Developing an accurate sales forecast is the first step in effective inventory management as it helps in predicting the demand for products and enables the organization to maintain appropriate inventory levels. This ensures that the company does not end up with excess inventory or stockouts. Option B, C, and D are important too, but they come after developing a sales forecast.

Effective Management of Inventory Begins With