Inventory position is defined as
A)ending inventory + outstanding orders
B)ending inventory - backorders
C)outstanding orders - on hand inventory
D)ending inventory

Question

Quizplus · Accepted Answer

Inventory position is the total amount of inventory a company has on hand plus any outstanding orders that have not yet been fulfilled. Therefore, the formula for calculating inventory position is ending inventory plus outstanding orders. The other answer choices either do not include outstanding orders or only include certain components of inventory position.

Inventory Position Is Defined as