Which of the following variables is the most appropriate customer-facing goal used to determine the target inventory level?

Question

Quizplus · Accepted Answer

The Level of service is the most appropriate customer-facing goal used to determine the target inventory level. This variable represents the expected percentage of customer demand that will be met from on-hand inventory, which directly impacts customer satisfaction. A higher level of service will require a higher inventory level to ensure that customer demand can be met consistently. The other variables listed (inventory turns, total delivery cost, and delivery lead time) are important metrics for supply chain management, but do not directly measure customer satisfaction or demand fulfillment.

Which of the Following Variables Is the Most Appropriate Customer-Facing