Annual material check
Continuous inventory method
A.B.C. Analysis
Economic order quantity
Answer is Right!
Answer is Wrong!
The correct answer is: B. Continuous inventory method.
A continuous inventory method is a system of inventory control in which the level of inventory is continuously monitored and adjusted as needed. This is in contrast to a periodic inventory method, in which inventory is only counted and adjusted at regular intervals.
Continuous material check is a part of the continuous inventory method. It involves regularly checking the level of inventory and taking action to replenish it as needed. This helps to ensure that the company always has the right amount of inventory on hand, which can help to reduce costs and improve efficiency.
The other options are incorrect because they are not methods of inventory control.
- Annual material check is not a method of inventory control. It is a type of inspection that is typically done once a year to ensure that the company’s inventory is accurate.
- A.B.C. Analysis is a method of prioritizing inventory items based on their value. It is not a method of inventory control.
- Economic order quantity is a formula that is used to determine the optimal order quantity for a product. It is not a method of inventory control.