Upon Graduation with Your Finance Degree, You Take a Position

Multiple Choice

Upon graduation with your finance degree, you take a position with a medium-sized manufacturing concern. You find that there are several pieces of inventory required in the manufacturing process that make up a small percentage of physical inventory, but a large percentage of inventory value. Anxious to impress your boss, you suggest the firm use the ______________ of inventory management.

A) EOQ model.
B) Derived demand model.
C) Shortage cost model.
D) Inventory depletion model.
E) ABC model.