Q161
The two bin system is concerned with
A.
Ordering procedure
AnswerB.
Forecasting sales
C.
Production planning
D.
Despatching and expediting
Answer: Option A
Solution
Answer: Option A
Solution:
The two bin system is a method used in inventory management and is concerned with the ordering procedure.
This system involves two bins for each item in inventory. One bin is used to meet current demand and the other is a reserve or buffer stock. When the first bin is empty, an order is placed to refill it while the second bin is used to meet demand during the replenishment period.
Therefore, the correct answer is Option A: Ordering procedure.