When automatic purchase orders are generated,to help make sure that goods are ordered for products that the company still needs,the company should
A)have all purchase orders approved by the purchasing manager.
B)have vendors automatically replenish the shelves.
C)ensure that re-order points are monitored.
D)have receiving reports matched to the purchase order amounts.

Question

Quizplus · Accepted Answer

Re-order points are the predetermined inventory levels at which new orders need to be placed to maintain inventory levels. Monitoring these points ensures that goods are ordered when needed and not too early or too late. This helps to prevent stockouts and excess inventory. A and D may provide some level of control over the ordering process, but they do not ensure that goods are ordered only when needed. B is not a practical solution as vendors cannot determine when stock needs to be replenished.

When Automatic Purchase Orders Are Generated,to Help Make Sure That