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Which type of inventory distribution system requires the use of a predetermined inventory list?

a) Just-in-Time (JIT)
b) Automated Dispensing Cabinets (ADC)
c) Par Level System
d) Vendor-Managed Inventory (VMI)

1 Answer

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Final answer:

The Par Level System is the inventory distribution system that uses a predetermined list, setting specific minimum stock levels for each item to trigger reorder.

Step-by-step explanation:

The type of inventory distribution system that requires the use of a predetermined inventory list is the Par Level System. In this system, a specific 'par level' is set for each inventory item, which is the minimum amount that must be on hand at all times. When the inventory falls below this level, more items are ordered to replenish stock up to the par level. This is different from other systems like Just-in-Time (JIT), where inventory is not ordered until it is immediately needed, or Vendor-Managed Inventory (VMI), where the vendor is responsible for managing and replenishing inventory based on agreed-upon levels.

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