Asked by
Tyler Parke
on Nov 30, 2024
Verified
What does the letter B 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
The quantity of a product or service that is expected to be sold or used during the period it takes for an order to be delivered or replenished.
Review Period
a set time frame during which performance, inventory levels, or supply chain activities are assessed and evaluated for efficiency and effectiveness.
Cycle Stock
The portion of inventory that companies hold to fulfill their regular sales orders, replenishing it as it depletes.
- Describe and interpret the disparity between continuous and periodic review policies in the context of inventory replenishment.
Verified Answer
ND
Learning Objectives
- Describe and interpret the disparity between continuous and periodic review policies in the context of inventory replenishment.