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

The statement about average inventory being Q/2 implies that an entire order quantity arrives at one time (A), the previous order quantity is entirely depleted when the next order arrives (B), and an order quantity is depleted at a uniform rate over time (C). However, the statement does not imply anything about backorders, so choice D is not implied.

Which of the Following Is NOT Implied When Average Inventory