Which of the following is not implied when average inventory is Q/2, where Q is the order quantity?
A) An entire order quantity arrives at one time.
B) The previous order quantity is entirely depleted when the next order arrives.
C) An order quantity is depleted at a uniform rate over time.
D) Backorders are permitted.

Question

Quizplus · Accepted Answer

Backorders are not implied in the calculation of average inventory as Q/2, which assumes a continuous and uniform depletion of inventory without shortages or backorders.

Which of the Following Is Not Implied When Average Inventory