Which of the following inventory management techniques would help a business owner make the best use of his company's cash?
A)Avoid overbuying inventory.
B)Schedule inventory deliveries at the latest possible date.
C)Purchase goods from the fastest suppliers who can meet quality standards to keep inventory levels low.
D)All of the above

Question

Quizplus · Accepted Answer

All of the above techniques would help a business owner make the best use of his company's cash. By avoiding overbuying inventory, a business owner can reduce the amount of money tied up in inventory, which helps improve cash flow. Scheduling inventory deliveries at the latest possible date helps reduce the amount of time that inventory sits in storage, which also helps improve cash flow. Purchasing goods from the fastest suppliers who can meet quality standards helps keep inventory levels low, which helps reduce the amount of money tied up in inventory. Therefore, all of these techniques are helpful in managing inventory, reducing costs, and improving cash flow.

Which of the Following Inventory Management Techniques Would Help a Business