The "redline method" that is used in inventory management is a:
A. policy of drawing a red line around the firm's location to determine from which suppliers it should purchase raw materials.
B. restriction imposed on the amount of inventory a company that uses a just-in-time inventory system can order.
C. minimum credit score (hurdle) that a customer must possess to purchase inventory on credit from the selling firm.c
D. method of controlling inventories by drawing a red line around the inside of a bin.
E. method of controlling receivables by drawing a red line on invoices of companies that normally pay late.
Answer: D
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