Both ________ and ________ increase as the safety inventory is increased.
A)fill rate;cycle service level
B)lead time;cycle service level
C)fill rate;lead time
D)reorder point;lead time

Question

Quizplus · Accepted Answer

As safety inventory increases, the fill rate (the percentage of customer demand that can be immediately filled from stock) and cycle service level (the percentage of orders shipped to customers within a specific time frame) also increase. This is because safety inventory provides a buffer against stockouts and allows for more reliable order fulfillment. Lead time (the time it takes to receive an order from the supplier) and reorder point (the inventory level at which a new order should be placed) may also be affected by safety inventory, but it is not specifically stated that they increase as safety inventory increases. Therefore, option A is the best choice.

Both ________ and ________ Increase as the Safety Inventory Is

Both and Increase as the Safety Inventory Is