The goal of inventory management is to:
a. minimize inventory levels while maintaining an adequate supply of goods to meet customer demands.
b. maintain the highest possible inventory of raw materials and finished goods as buffer stocks.
c. act as an alternative to supply chain management in firms.
d. create regular customer stockouts so that the demand for products increases.
ANSWER: a
If too few products are kept on hand, then the company risks product shortages and angry customers, and ultimately lost sales. The goal of inventory management is to keep inventory levels as low as possible while maintaining an adequate supply of goods to meet customer demands.
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