Ligo's batch of 1,000 boxes of canned sardines gets manufactured in the first week of the month, and another batch of 1,000 in the second week. The batch produced first gets delivered to the warehouse and must be sold first. Ligo uses this inventory method which follows the logic that to avoid obsolescence, they should sell the oldest inventory items first and maintain the newest items in inventory. A) First in, first out B) Last in, first out Just in time
Ligo's batch of 1,000 boxes of canned sardines gets manufactured in the first week of the month, and another batch of 1,000 in the second week. The batch produced first gets delivered to the warehouse and must be sold first. Ligo uses this inventory method which follows the logic that to avoid obsolescence, they should sell the oldest inventory items first and maintain the newest items in inventory. A) First in, first out B) Last in, first out Just in time
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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