Which of the following is true with regard to fill rates and inventory?
A)There is a strong relationship between fill rates and the amount of inventory in stock.
B)As inventory is added in steady increments,a firm's fill rate decreases.
C)The higher the fill rate,the easier it is to improve the fill rate.
D)Fill rates are inversely related to inventory levels.

Question

Quizplus · Accepted Answer

There is a strong relationship between fill rates and the amount of inventory in stock. As the inventory levels increase, a company's fill rate improves since there are more products available to fulfill customer orders. Conversely, as inventory levels decrease, fill rates usually decrease as well due to limited availability of products to fulfill customer demand.

Which of the Following Is True with Regard to Fill