Question: The difference in inventory methods might be affected by the ability to acquire replacement items. Jacobs and Chase described control as the provision of when

The difference in inventory methods might be affected by the ability to acquire replacement items. Jacobs and Chase described control as the provision of "when" to order, how to order, and how many to deliver. Sometimes this is done due to convenience or necessity. For example, I would use day-old bread from the bread store in my bar's kitchens. The bread was still good and was used for sandwiches. The bread store was stocked with returns from supermarkets. Thursday's bread store had the most extensive inventory of the freshest day-old bread. Therefore, I used a fixed-time model for all of my bread. I could have used a fixed order point to trigger the acquisition of bread; however, that would have required numerous trips to the bread store. Another way that the model might be affected is through external forces. In Arizona, beer used in a bar can only be delivered or acquired by state-authorized organizations. You cannot go to the store and buy beer and then sell it in your bar. The distributors must distribute beer to bar owners.

Therefore, what inventory method must I use to control the beer inventory?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!