The average inventory level and the number of orders per year are inversely related; as one increases,the other decreases.

Question

Quizplus · Accepted Answer

This statement is true as per the basic principle of inventory management. As the average inventory level increases, the number of orders required to maintain the inventory level decreases. Conversely, as the average inventory level decreases, the number of orders required to maintain the inventory level increases.

The Average Inventory Level and the Number of Orders Per