Which inventory control method was described as old and widely used for set reorder points?

Which inventory control method was described as old and widely used for set reorder points?

• A. Want book
• B. ABC analysis
• C. Just-in-time
• D. Economic order quantity

Answer: (A)

Setting reorder points using a traditional, manual tracking system is what this item is testing. A want book is an old inventory control tool that records what is needed to keep stock at target levels. It lists each item with a desired quantity and signals when on-hand stock falls to a pre-set reorder point, prompting a restock to return inventory to the target level. This approach relies on simple, predefined minimums and quantities, which is why it’s described as old and widely used for set reorder points. In contrast, ABC analysis groups items by how valuable they are, not when to reorder; just-in-time aims to minimize on-hand inventory by aligning orders with production or demand; and economic order quantity focuses on calculating the optimal order size to minimize total costs rather than establishing specific reorder points.

Setting reorder points using a traditional, manual tracking system is what this item is testing. A want book is an old inventory control tool that records what is needed to keep stock at target levels. It lists each item with a desired quantity and signals when on-hand stock falls to a pre-set reorder point, prompting a restock to return inventory to the target level. This approach relies on simple, predefined minimums and quantities, which is why it’s described as old and widely used for set reorder points.

In contrast, ABC analysis groups items by how valuable they are, not when to reorder; just-in-time aims to minimize on-hand inventory by aligning orders with production or demand; and economic order quantity focuses on calculating the optimal order size to minimize total costs rather than establishing specific reorder points.