The operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is
A) production rate.
B) workforce.
C) overtime.
D) backlog.
E) inventory on hand.

Question

Quizplus · Accepted Answer

The planned inventory carried over the various periods in the planning horizon is related to the inventory on hand. Inventory on hand is the amount of inventory that a company has at any given time, which includes raw materials, work-in-progress, and finished goods. Proper inventory planning is necessary to balance supply and demand and manage cash flow. Therefore, the operational parameter concerned with the planned inventory carried over the various periods in the planning horizon is inventory on hand.

The Operational Parameter Concerned with the Planned Inventory Carried Over