The strongest factor influencing the choice of inventory model is the:
A)pattern of demand.
B)value of the inventoried item.
C)presence or absence of quantity discounts.
D)presence or absence of safety stocks.

Question

Quizplus · Accepted Answer

The pattern of demand has the strongest influence on the choice of inventory model because it helps determine the appropriate ordering strategy, such as continuous or periodic review, and the necessary level of safety stocks to meet customer demand. Other factors, such as the value of the item and quantity discounts, may also impact the inventory model chosen, but they are not the primary factor.

The Strongest Factor Influencing the Choice of Inventory Model Is