Asked by Larry Dowling on Jun 24, 2024
Verified
Cycle inventory is inventory that is built up to counter predictable variability in demand.
Cycle Inventory
Inventory that is carried as a result of the production or purchase process, determined by the frequency of orders and the quantity of goods ordered each time.
Demand Variability
The extent to which demand can fluctuate over a period of time, impacting inventory management and planning processes.
- Ascertain the different types of inventory and their specific uses in the supply chain ecosystem.
Verified Answer
MP
Malibongwe PhungulaJun 29, 2024
Final Answer :
False
Explanation :
Cycle inventory is inventory that companies hold to facilitate their operations in the face of predictable sales patterns, not specifically to counter variability in demand. It is part of the normal replenishment cycle, rather than a response to variability.
Learning Objectives
- Ascertain the different types of inventory and their specific uses in the supply chain ecosystem.
Related questions
Seasonal Inventory Is Inventory That Is Built Up to Counter ...
The Average Amount of Inventory Used to Satisfy Demand Between ...
Companies Using Seasonal Inventory Will Maintain a Level Inventory Increase ...
All Raw Materials,work in Process,and Finished Goods Within a Supply ...
Goods That Are Partway Through the Manufacturing Process, but Not ...