The two bin system is concerned with
A. Ordering procedure
B. Forecasting sales
C. Production planning
D. Despatching and expediting
Answer: Option A
Solution (By Examveda Team)
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.
This Question Belongs to Mechanical Engineering >> Industrial Engineering And Production Management
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The two-bin system is primarily concerned with inventory management. It is a simple method used to control the inventory levels of items, typically in manufacturing or distribution settings.
In this system, there are two bins for each item: one bin contains a quantity of the item currently in use (the active bin), and the other bin contains a reserve quantity of the item (the reserve bin). When the active bin runs out of stock, the reserve bin is used to replenish the active bin. This signals the need to reorder more stock to refill the reserve bin, ensuring that there is always a supply of the item available.
The two-bin system helps streamline inventory management by providing a visual cue for when stock needs to be replenished, reducing the risk of stockouts and ensuring that essential items are always available when needed.