The inventory control method that uses a targeted service level allowing for the variability of supply and demand is
A)ABC method.
B)economic order quantity.
C)just-in-time inventory system.
D)statistical inventory control.

Question

Quizplus · Accepted Answer

The inventory control method that uses a targeted service level allowing for the variability of supply and demand is statistical inventory control. This method takes into account both the variability of demand and supply and sets a target service level for inventory availability, ensuring that inventory is at an optimal level while minimizing the risk of stockouts. ABC method is a classification method used to categorize inventory items based on their value, economic order quantity is a formula used to calculate the optimal order quantity to minimize inventory costs, and just-in-time inventory system is a lean inventory management approach where inventory is ordered and received only when needed for production.

The Inventory Control Method That Uses a Targeted Service Level