Question

Of the following, select the reasons why up-to-date inventory management systems are highly efficient. More than one answer may be correct. Check All That Apply

a. Estimates of reordering points are highly accurate
b. Accurate records of inventory levels are maintained
c. Stockouts are minimized
d. Inventory turnover is very low

Answer 1

Up-to-date inventory management systems are highly efficient because they provide highly accurate estimates of reordering points, maintain accurate records of inventory levels, and minimize stockouts.

Step-by-step explanation:

The reasons why up-to-date inventory management systems are highly efficient include:

• Estimates of reordering points are highly accurate: With accurate and real-time data, inventory management systems can calculate and predict when items need to be reordered, ensuring that the right quantities are available at the right time.
• Accurate records of inventory levels are maintained: By constantly updating inventory levels, businesses can avoid overstocking or stockouts, leading to better control and management of inventory.
• Stockouts are minimized: With real-time monitoring and accurate data, inventory management systems can alert businesses when inventory levels are low, allowing them to restock in a timely manner and minimize stockouts.

Therefore, options a, b, and c are the correct reasons why up-to-date inventory management systems are highly efficient.