The two most basic inventory questions answered by the typical inventory model are
A) timing and cost of orders
B) quantity and cost of orders
C) timing and quantity of orders
D) order quantity and service level
E) ordering cost and carrying cost

Question

Quizplus · Accepted Answer

The typical inventory model answers the two most basic inventory questions of what timing and quantity of orders should be placed to maintain a certain level of inventory. The model considers the trade-off between the costs of carrying inventory and the costs of placing orders, with the goal of minimizing the total cost. Thus, the correct choice is C, timing and quantity of orders.

The Two Most Basic Inventory Questions Answered by the Typical