Question

Mr. D is the manager of a local Walgreens. His biggest concern is to make sure that his store is always making the most profit possible. He cuts costs by focusing on certain logistical decisions. Every other day Walgreens receives shipments from Pepsi, Evian, Hershey, and numerous other manufacturers. Walgreens insists on small shipments every two days, which helps to keep their inventory costs low. What system is Mr. D using at Walgreens to reduce his costs? Group of answer choices electronic data interchange materials handling backward vertical integration just in time inventory vendor managed inventory

Answer 1

Answer: Just in time inventory

Explanation:

Just in time is the strategy that is generally used in production units where they can efficiently manage the stock by reducing the waste. The waste can be reduced by receiving the goods only when they are needed so this reduced the inventory costs.

Inventory cost are the costs related to procurement, storage and maintenance of the inventory. Walgreens store can reduce the stocking of goods cost by ordering them on time when required alone. The small shipment of goods for every two days once can reduce the inventory cost.