Which of the following is an advantage in Inventory Planning?

d. All the Above ...................................

Option D

.................................

d. All the Above>>>>>>>>>>>>>>Right Answer

D option all above                                  .

I choose option D...all of the above. 

Inventory planing aims to :

Keeping buffer or Safety stock,Buying in Economic Order Quantity & Replenishing at Re Order Level , so answer is D.

All the three safety stock, Economic order quantity, reorder level will constitute more accurate inventory planning. hence answer is Option D

 Option d. All the Above     ------- is the right answer

Option d is the right answer.

Hello Team,

Inventory planning and control are functions relating to inventory management. Business owners pay close attention to inventory as it usually represents the second largest expense in their businesses. Inventory planning includes creating forecasts to determine how much inventory should be on hand to meet consumer demand. Inventory control is the process by which managers count and maintain inventory items in the business

Business owners usually create internal policies and procedures for inventory planning and control. Managers and employees must follow these policies and procedures when handling the company’s inventory. Policies and procedures outline who can order inventory, how inventory flows through the company, accounting policies for valuing inventory and procedures to deal with obsolete goods. Inventory planning and control has several benefits for companies who derive the majority of their revenue sales from inventory.

Inventory planning and control can help companies manage cash flow. Small businesses do not have large capital balances for purchasing copious amounts of inventory. Business owners implement policies and procedures to limit the amount of money spent on inventory. Cash flow improvements also come from purchasing the lowest cost inventory available in the business environment. Not only does low-cost inventory save the company money, but it also allows companies to develop a cost advantage in the economic market.

Business owners can use inventory planning and control to generate higher profits. Purchasing the right type of inventory to meet consumer demand often leads to higher business profits. Companies who sell through their entire inventory multiple times each year also increases business profits. Inventory planning and control procedures can also limit the amount of obsolete inventory in the company. Obsolete inventory must be disposed of and written off by the company. Writing off obsolete inventory creates a loss on the income statement.

Inventory policies and procedures prevent employee abuse of inventory. Loose work environments can allow employees to steal inventory items for personal use. Stolen inventory results in a financial loss for the company. Employees can also use a company’s inventory items in the workplace for personal reasons. Previously used inventory may be unsellable depending on the company’s operating industry. Proper employee behavior is a significant factor relating to inventory cash flow and profitability.

Business owners should consider implementing business technology to help manage inventory. Business and accounting software provides business owners with electronic methods to order, receive, manage and sell inventory. Technology usually helps business owners spend less time on inventory planning and control functions. Spending less time on these back office functions allows business owners to remain at the forefront of business sales in increasing their company’s profitability.

Regards,

Saiyid

Thanks for the invite ............................ d. All the Above