CGFM Exam 3 - Financial Management Functions Practice Exam

The correct answer is focused on inventory levels and ordering policies because these aspects are critical for managing the supply chain effectively. Supply control involves monitoring and managing the flow of materials and quantities throughout the organization to ensure that there is an adequate supply of goods to meet demand without incurring excess costs or waste.

Maintaining optimal inventory levels ensures that the organization has enough products available for customers while minimizing overstock situations that can lead to increased holding costs. Additionally, establishing appropriate ordering policies dictates when and how much inventory should be ordered, which is essential for maintaining efficiency in supply chain operations.

Factors such as employee engagement levels, pricing strategies, and market saturation, while important in broader business operations, do not directly influence the specific mechanisms and processes used to control supply levels within an organization. Thus, when considering the factors relevant to supply control specifically, inventory levels and ordering policies are paramount.