ACCA Performance Management (F5) Certification Practice Exam

What is a primary benefit of a resource planning system?

1. Maximizes employee engagement

2. Enhances global communication

3. Keeps inventory records updated

4. Reduces operational costs

The correct answer is: Keeps inventory records updated

A primary benefit of a resource planning system is that it keeps inventory records updated. This ensures that a business has accurate and real-time visibility into its inventory levels, which is crucial for effective supply chain management. When inventory records are consistently updated, it helps prevent stockouts and overstock situations, allowing for better inventory turnover and improved customer service. This capability is vital for maintaining the right balance between supply and demand, which can directly impact a company's operational efficiency and profitability. Having current inventory data helps streamline procurement processes, aids in production planning, and ensures that the organization is leveraging its resources optimally. Additionally, updated inventory records facilitate better decision-making regarding purchasing and stock replenishment, thus contributing to the overall effectiveness of resource management within the organization.