Question

Q 1.16: spelling corporation only maintains enough finished product inventory to cover their average weekly order volume. although they occasionally find that their inventory does not cover their orders, they rarely have back orders. spelling corporation uses ________ inventory methods.

Answer 1

I think that Spelling Corporation uses JUST-IN-TIME inventory method.

Just-in-time inventory method requires producers to forecast demand as accurately as possible to ensure that the supply is sufficient to cover demand without excesses that may result to wastage and losses. Just-in-time inventory method promotes increase in efficiency in producing products.

Other inventory methods are manual counts, perpetual inventory, first-in first-out (FIFO), and last-in first-out (LIFO).