Asked by Beverly Chafton on May 03, 2024

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As the number of order cycles per season increases,

A) the leftover inventory increases,but at a decreasing marginal rate.
B) the leftover inventory increases and at an increasing marginal rate.
C) the leftover inventory decreases,and at an increasing marginal rate.
D) the leftover inventory decreases,but at a decreasing marginal rate.

Order Cycles

The repetitive process or duration between the placement of orders by customers and the delivery of goods or services.

Leftover Inventory

Refers to the goods or materials that remain unsold and are kept in storage after a sales period has ended.

Season

A period of the year characterized by specific climatic conditions or marked by certain events or festivities.

  • Analyze the implications of multiple ordering cycles per season on inventory management and supply chain efficiency.
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ZK
Zybrea KnightMay 07, 2024
Final Answer :
D
Explanation :
As the number of order cycles per season increases, companies can more accurately match supply with demand, leading to a decrease in leftover inventory. However, as the system becomes more efficient, the marginal rate of decrease in leftover inventory will slow down because the initial adjustments remove the most significant inefficiencies, leaving less room for improvement.