What requirements must be fulfilled to implement an inventory determination strategy for a material?

Implementing an inventory determination strategy for a material fundamentally requires creating an inventory determination rule. This rule is integral as it defines how inventory quantities are managed and accessed within the system, tailored to the specific needs of the organization. The inventory determination rule sets parameters that determine which stock is available for allocation and prioritizes the stock based on various criteria such as stock type, batch, or quality status.

While the other options may contribute to effective inventory and supply chain management, they do not directly pertain to the core requirement of implementing an inventory determination strategy. Regular updates to supplier information, compliance with regulatory storage requirements, and conducting annual audits all play supportive roles in overall inventory management but do not establish the necessary framework for a specific inventory determination strategy.