Inventory Management MCQs

Minimum level is a warning level to draw management attention to the fact that inventories are approaching a dangerously low level and that stockouts are possible

April 27, 2022

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Minimum level is a warning level to draw management attention to the fact that inventories are approaching a dangerously low level and that stockouts are possible

Q. Minimum level is a warning level to draw management attention to the fact that inventories are approaching a dangerously low level and that stockouts are possible.

A. True

B. False

Answer: True

Minimum level is a warning level to draw management attention to the fact that inventories are approaching a dangerously low level and that stockouts are possible

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The overall objective of inventory control is, therefore, to maintain inventory levels so that the total of the ______________ costs is minimised.

Minimum level is a warning level to draw management attention to the fact that inventories are approaching a dangerously low level and that stockouts are possible

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Inventory control levels can be calculated in order to maintain inventories at the optimum level. The three critical control levels are:

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