Certified Materials and Resources Professional (CMRP) Practice Test Prep and Study Guide

Overordering inventory to avoid shortages is generally not a recommended method for effectively managing inventory. This approach can lead to several issues, including excess stock, increased holding costs, and potential waste, especially if the inventory is perishable or subject to obsolescence. Effective inventory management aims to balance supply with demand efficiently, minimizing costs while ensuring that materials are available when needed.

In contrast, implementing periodic counting helps maintain accurate inventory records and identifies discrepancies, while just-in-time inventory streamlines operations by ensuring that materials arrive only as needed for production, thus reducing waste. Additionally, the regular review of stock levels allows organizations to respond proactively to changes in demand and adjust their purchasing accordingly to maintain optimal inventory levels. These methods focus on operational efficiency and cost control, which are essential for effective inventory management.