Asked by Kayla Cohen on Jun 03, 2024
Verified
The average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
Cycle Inventory
The average amount of inventory used to satisfy demand between orders, part of the total inventory that cycles through the supply chain.
Supplier Shipments
Deliveries of goods or materials from suppliers to manufacturers, retailers, or other entities in the supply chain.
- Distinguish between different categories of inventory and understand their roles in supply chain management.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
A
Explanation :
Cycle inventory represents the average amount of inventory a company holds to meet the demand between two successive orders from suppliers. It is also known as the lot-size inventory. Safety inventory is the additional inventory held to manage unexpected demand fluctuations or supply disruptions, and seasonal inventory is the inventory purchased in advance to prepare for anticipated seasonal demand. Sourcing refers to the act of selecting suppliers and managing supplier relationships. Therefore, cycle inventory is the correct option.
Learning Objectives
- Distinguish between different categories of inventory and understand their roles in supply chain management.
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