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What does inventory management involve?
AOnly counting the finished goods once a year
BOnly choosing which supplier will be used
CDeciding quantities and ordering, storing, and tracking
DOnly setting the price at which stock is sold
Answer & Solution
Correct answer: C. Deciding quantities and ordering, storing, and tracking
1. Inventory management decides how much of each type of inventory to keep on hand.
2. It then covers the ordering, receiving, storing, and tracking of that inventory.
3. So it is a continuous process rather than an annual count, which is why option A is far too narrow.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Inventory Management: Not Just Parts_
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