Which of the following statements about inventory management is incorrect? Inven

Question

Which of the following statements about inventory management is incorrect?
Inventory is defined as the stock of any item or resource used in an organization, and includes raw materials, work-in-process
and finished goods.
Cycle counting is a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or
twice a year
The goal of the inventory control system is to ensure that items are always ordered using consistent time intervals.
One of the goals of inventory accuracy is to ensure that electronic recording of inventory is the same as the amount of on-hand
inventory
One use of inventory is to maintain independence of operations across the supply chain.

Explanation / Answer

One of the objectives of inventory management is to maintain adequate inventory at each stage of operations across the supply chain so that proper coordination amongst various stages of operation is maintained and whole supply chain starting from sourcing of material till delivery of finished item to customer is executed seamlessly. Improper inventory management leads may lead to disruption in one of the operations along the supply chain thus disturbing the smooth operations of the supply chain as such .

The correct answer to the question therefore will be “ One use of inventory is to maintain independence of operations across supply chain”

ANSWER : ONE USE OF INVENTORY IS TO MAINTAIN INDEPENDENCE OF OPERATIONS ACROSS SUPPLY CHAIN

ANSWER : ONE USE OF INVENTORY IS TO MAINTAIN INDEPENDENCE OF OPERATIONS ACROSS SUPPLY CHAIN

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