Asked by
hannah leaphart
on Oct 18, 2024
Verified
What does the letter A represent in Figure 1?
A) Demand during lead time
B) Demand during review period
C) Order up to level
D) Cycle stock
Demand During Lead Time
Demand during lead time is the total customer demand for a product while waiting for replenishment or delivery of new stock.
Review Period
The designated time frame within which a process or performance is evaluated.
Cycle Stock
Inventory that is replenished regularly in response to actual customer demand.
- Recognize and clarify the distinctions present between continuous and periodic review approaches in inventory management.
Verified Answer
AH
Learning Objectives
- Recognize and clarify the distinctions present between continuous and periodic review approaches in inventory management.