The practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer is termed as _____.
A) perpetual inventory
B) point-of-sale system
C) just-in-time inventory
D) optimum stocking level

Question

Quizplus · Accepted Answer

The practice described is known as just-in-time inventory. This approach aims to minimize inventory costs by only ordering and receiving goods when they are needed for a sale. It helps to improve efficiency in the supply chain and reduce the need for warehousing and inventory management. Option A (perpetual inventory) refers to a system of continuously tracking inventory levels and Option B (point-of-sale system) refers to a system of recording sales at the time of purchase. Option D (optimum stocking level) is the ideal quantity of inventory to be stocked to balance the cost of inventory against the cost of stockouts.

The Practice of Purchasing and Accepting Delivery of Inventory Only