Answered: The production system's objective of…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Related questions

Question

The production system's objective of minimizing inventory investment is centrally important to which of the following stakeholders?

OA VP Marketing

ObVP Quality

OVP Manufacturing

Od VP Finance

Expert Solution

Step 1

Maintaining sufficient inventory to satisfy consumer demand while being cost-effective is the goal of inventory management.

To satisfy consumer demand, inventory is kept on hand. Cost containment hasn't always been at the top of the list of priorities due to the dynamic nature of the corporate environment. Because there was little rivalry now, businesses used to maintain a constant level of inventory. Inventory prices are now rising as a result of increased competition, an expanding market, and quickly evolving items and features.