Question 1
The costs that result when a company runs out of a particular item for which there is a customer demand are ________.
◦ shrinkage costs
◦ shortage costs
◦ stockout costs
◦ EOQ estimation costs
Question 2
Which of the following is the best definition of inventory management?
◦ planning and control of the flow inventory into and through an organization
◦ planning, coordinating, and controlling activities related to the flow of inventory into, through, and out of an organization
◦ planning and coordinating activities related to the flow of inventory into and through an organization
◦ planning, coordinating, and control of inventory into an organization