Apex Electronics, a regional distributor of consumer electro…
Apex Electronics, a regional distributor of consumer electronics, is re-evaluating its inventory management strategy. The operations team is focused on striking the right balance between maintaining enough inventory to satisfy customers and minimizing inventory-related costs. The CFO notes that inventory currently represents almost 50% of total invested capital, making it one of the company’s largest assets. Meanwhile, the operations director is concerned that holding too much inventory could reduce efficiency, while holding too little could lead to missed sales. To improve decision-making, the team reviews key principles of inventory management. Which of the following statements are consistent with effective inventory management principles? Select all that apply.
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