Levels of finished-goods inventories are controlled by
A) the distribution system.
B) decisions by middle management.
C) the marketing department.
D) the overall production scheduling system.
E) purchasing managers.

Question

Quizplus · Accepted Answer

The overall production scheduling system controls the levels of finished-goods inventory based on production needs and lead times. Decisions by middle management, the marketing department, and purchasing managers can influence inventory levels, but do not have direct control over them. The distribution system is responsible for the physical movement of inventory, but does not control inventory levels.

Levels of Finished-Goods Inventories Are Controlled by