Questions: The two main concerns of inventory control relate to the costs and the level of customer service.
Transcript text: The two main concerns of inventory control relate to the costs and the level of customer service.
Solution
The answer is True: The two main concerns of inventory control relate to the costs and the level of customer service.
Explanation:
Inventory control is a critical aspect of supply chain management and operations. It involves managing the inventory to ensure that the right amount of stock is available to meet customer demand while minimizing costs. The two primary concerns in inventory control are:
Costs: This includes the costs associated with ordering, holding, and managing inventory. Effective inventory control aims to minimize these costs by optimizing order quantities, reducing excess stock, and improving inventory turnover.
Level of Customer Service: This refers to the ability to meet customer demand promptly and efficiently. High levels of customer service are achieved by maintaining adequate stock levels to prevent stockouts and ensure timely delivery of products.
Balancing these two concerns is essential for efficient inventory management, as focusing too much on cost reduction can lead to stockouts and poor customer service, while prioritizing customer service excessively can result in high inventory holding costs.