Jean Inman Registered Dietitian (RD) Domain 4 Practice Exam

The min-max inventory method is focused on establishing minimum and maximum inventory levels for stock items. This approach involves determining the amount of stock needed to meet anticipated demand while avoiding excess inventory. The minimum level indicates how much stock should be on hand at any time, and when the inventory reaches that level, it triggers a reorder to bring stock back up to the maximum level.

Using projected needs rather than actual counts allows for a more strategic approach to inventory management, as it relies on historical data and trends to forecast future requirements. This can help in optimizing inventory turnover and minimizing waste, especially in environments where demand might fluctuate.

In contrast, par stock maintains a constant inventory level, the ABC inventory method categorizes stock into three groups based on value and usage, and the perpetual inventory method involves continuous tracking of inventory levels as they change with each transaction. These methods do not focus on adjusting stock based on projections, making them distinct from the min-max system.