Which of the Following Statements Is True About Inventory Management

Multiple Choice

Which of the following statements is true about inventory management?

A) The economic order quantity is the quantity at which the total inventory cost will be maximized.
B) A quantity discount is the level of inventory at which an order should be placed.
C) Safety stock is the additional inventory carried to guard against unexpected changes in sales.
D) The reorder point is the discount from the purchase price that is offered when inventory is ordered in large quantities
E) Outsourcing is the practice of ordering inventory from the supplier just when they are needed for production.