William attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must William take as he institutes this change?
A. Increase safety stock
B. Raise the reorder point
C. Reduce customer service standard
D. Increase order frequency
E. Reduce estimates of inventory turnover rate
Answer: D
You might also like to view...
The decline in effectiveness of mass-media advertising has led marketers to shift efforts to:
A) using advertising agencies B) creating brand parity C) trade promotions D) micro-marketing
GAAP requires the borrowers to record the note payable at its present value and use straight line method to record the interest expense
Indicate whether the statement is true or false
Bonds that are issued in a series so that a specified amount of the bonds mature each year are called
a. debenture bonds; b. serial bonds; c. term bonds; d. callable bonds; e. coupon bonds
Tests of controls include
a. confirming accounts receivable b. counting inventory c. completing questionnaires d. counting cash