The objective for managing inventory is to ________.
A) turn over inventory as quickly as possible without losing sales from stockouts
B) improve the average collection period without affecting the sales
C) make payment for the inventory as slowly as possible without losing suppliers
D) reduce the time taken to process inventory into finished goods and increase sales

Question

Quizplus · Accepted Answer

The objective for managing inventory is to turn over inventory as quickly as possible without losing sales from stockouts. This will help to optimize the use of resources, reduce holding costs, and increase customer satisfaction. Improving the average collection period or delaying payment to suppliers are objectives for managing accounts receivable and accounts payable, respectively. Reducing processing time for inventory into finished goods and increasing sales are objectives for managing the production process.

The Objective for Managing Inventory Is to ________