Question

What is the primary goal of inventory management?

• A. To maximize inventory levels
• B. To minimize inventory costs
• C. To optimize inventory levels for business needs
• D. To eliminate inventory entirely

Hint:

Good inventory management balances stock availability and cost efficiency.

Answer 1

The Correct Option is C

Step 1: Understanding inventory management.
Inventory management focuses on maintaining the right balance between supply and demand.

Step 2: Evaluating options.

• (A): Too much inventory increases costs.
• (B): Cost minimization is important but not the sole goal.
• (C): Correct. It ensures optimal stock levels to meet demand without excess.
• (D): Eliminating inventory is not practical.

Step 3: Conclusion.
Thus, the main goal is to optimize inventory levels.
Final Answer:} To optimize inventory levels for business needs.