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Question
The "redline method" that is used in inventory management is a:
a. policy of drawing a red line around the firm's location to determine from which suppliers it should purchase raw materials.
b. restriction imposed on the amount of inventory a company that uses a just-in-time inventory system can order.
c. minimum credit score (hurdle) that a customer must possess to purchase inventory on credit from the selling firm.c
d. method of controlling inventories by drawing a red line around the inside of a bin.
e. method of controlling receivables by drawing a red line on invoices of companies that normally pay late.
Answer
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Related questions
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c. Firms with relatively high debt ratios have higher expected returns when business is bad.
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