Question

Balancing IM and WM involves reconciliation between the ___________________.

A) Stock quantities in the storage bins and book stock quantities.
B) Inventory turnover ratio and order fulfillment rate.
C) Customer orders and supplier deliveries.
D) Demand forecasting and safety stock levels.

Answer 1

Balancing IM and WM involves reconciling stock quantities in storage with recorded book stock quantities to ensure inventory accuracy and efficiency.

Step-by-step explanation:

Balancing Inventory Management (IM) and Warehouse Management (WM) involves reconciliation between the stock quantities in the storage bins and book stock quantities. This is important for maintaining accuracy in inventory records, which has a direct impact on order fulfillment, supply chain efficiency, and financial reporting. Proper reconciliation ensures that physical stock matches up with what is recorded in the company's inventory system, highlighting discrepancies that may arise due to theft, loss, or administrative errors.