which of the following cannot be the cause of inventory reduction in XYZ compant A) YOUR SPARE SQUAD FOR WARRANTY REPAIRS (B) LOW REJECTION RATEC C) WHAT DID WORKERS CONSUME LESS THAN REQUIRED INPUTS D) INCREASE IN PRODUCTIVITY
Answers
Answer:
The right answer is B.
Explanation:
A low rejection rate cannot be the cause to reduce inventory. If products are being manufactured and accepted without rejection, that would need more inventory, not less. So the other statements may lead to reduction of inventory but not B. You can reduce inventory by the following:
- Reduce demand variability.
- Improve forecast accuracy.
- Re-examine service levels.
- Address capacity issues.
- Reduce order sizes.
- Reduce manufacturing lot sizes.
- Reduce supplier lead times.
The spare squad for warranty repairs cannot be cause of inventory reduction in XYZ Company
Explanation:
Low rejection can’t be the reason for inventory reduction it is the good sign of higher productivity.
If worker will use less input then required, optimization of the resources wouldn’t be used and it will be result into cost increment and inefficiency. Higher productivity means higher level of output but it will result into blockage of capital.