A firm uses the extended economic order quantity approach to inventory management.Which one of the following inventory levels is considered to be the minimum inventory level given this approach?
A)Zero inventory
B)Reorder point level
C)Safety stock level
D)50 percent of the reorder quantity
E)Safety stock plus the reorder quantity

Question

Quizplus · Accepted Answer

The minimum inventory level in the extended economic order quantity approach is the safety stock level, which acts as a buffer to prevent stockouts.

A Firm Uses the Extended Economic Order Quantity Approach to Inventory