An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level?
An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level?
To determine the minimum inventory level, the consumption rate should be considered. This input reflects the average rate at which an item is used or sold over a specific period of time, giving a clear indication of the required inventory level to meet demand without overstocking or running out. Qualified supplier, ABC classification, and number of sales transactions provide useful information but are not directly related to determining the minimum required inventory level.
A is right answer Very confusing between A & D Consumption rate is Avg transaction in a period , so its more accurate metric than No of Transactions