The average inventory in the supply chain due to either production or purchases in lot sizes that are larger than those demanded by the customer is

Question

Quizplus · Accepted Answer

Cycle inventory refers to the average inventory held in the supply chain for the purpose of satisfying customer demand over a particular cycle time. This inventory is caused by the production or purchase of larger lot sizes than demanded by the customer, and it represents a significant cost for the supply chain. Therefore, C is the best choice for the given scenario. A and D are incorrect because they refer to the actual count or value of inventory, not the average inventory. B and E are incorrect because distribution inventory refers to inventory held by distributors, wholesalers, or retailers, not the supply chain as a whole.

The Average Inventory in the Supply Chain Due to Either