Which of the following is true for the mini-max stock method for placing food orders?
A)Actual need might be greater than the amount ordered.
B)The amount ordered is higher in some months than others.
C)The method should not be used to order items whose usage fluctuates.
D)A & C

Question

Quizplus · Accepted Answer

The mini-max stock method establishes minimum and maximum inventory amounts. When the minimum level is reached, an order is place to replenish inventory only to the maximum level. This means that the same amount is ordered each time. as a result, actual need might be greater than the ordered amount, and that the method is not suitable for maintaining stock of items with variable usage.

Which of the Following Is True for the Mini-Max Stock