Which of the following is the best method to determine inventory parameters such as safety stock and order quantity?
A)Inventory simulation
B)Supply chain design optimization
C)Analytic inventory formulation
D)Transportation analysis tool

Question

Quizplus · Accepted Answer

Analytic inventory formulation is the best method to determine inventory parameters such as safety stock and order quantity. This method uses mathematical models and formulas to calculate optimal inventory levels based on factors such as demand variability and lead time. Supply chain design optimization and transportation analysis tools may help in determining the appropriate inventory levels for a specific supply chain network, but they are not as specific as analytic inventory formulation. Inventory simulation can be useful for testing different scenarios and evaluating the impact of different decisions on inventory levels, but it is not the best method for determining optimal inventory parameters.

Which of the Following Is the Best Method to Determine