Keisi is the new Operations Manager at Warehousing Logistics Corporation. She is reviewing several products sold by the organisation and deciding on the best warehousing options available. Keisi is looking at item 56283. This item is low cost, not sold in high volumes, but important to customers.
Which of the following stocking policies should be used for this item?
- Never be out of stock
- Maintain an average of 3 days stock
- Stock reviewed monthly
- No stock held locally
Answer(s): B
Explanation:
The item described is a `regular seller'--important to customers but not sold in high volumes. Keeping an average of 3 days' stock balances demand with the effort required for stock management. "Never be out of stock" is only for high-demand, critical items, while "monthly stock review" might lead to lost sales. (See p. 158)
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