Inventory position is
A)the amount of inventory on hand in excess of expected demand.
B)the amount of inventory on hand.
C)the amount of inventory on hand plus the amount of inventory on order.
D)None of these are correct.

Question

Quizplus · Accepted Answer

Inventory position is the total amount of inventory a company has on hand at its respective warehouses, distribution centers, retail stores, or other storage locations, and it also includes the amount of inventory the company has on order but has not yet received. Therefore, option C correctly defines the inventory position. Option A is incorrect because it only considers excess inventory, while inventory position includes all inventory, regardless of whether it is expected or not. Option B is incorrect because it only considers on-hand inventory, while inventory position also includes inventory on order. Option D is incorrect because one of the other options is correct.

Inventory Position Is