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Which of the following is the PRIME objective of inventory management? [This objective helps explain the...

Which of the following is the PRIME objective of inventory management? [This objective helps explain the entire inventory management process]

Minimize relevant cost while maintaining product availability

Increase efficiency of Purchasing, Sales and Operations

Increase customer service

Reduce uncertainty
business   Operations-Management   
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Answer #1

The correct option is

Minimize relevant cost while maintaining product availability

The prime objective of the inventory management is to increase the service level by increasing the product availability at the lowest cost possible. Service level means lowering the probability of stock out.

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