In a two-bin inventory system,the amount contained in the second bin is equal to the:
A)reorder point,the amount required until an order arrives.
B)the EOQ
C)amount in the first bin.
D)optimum stocking level.
E)safety stock.

Question

Quizplus · Accepted Answer

In a two-bin inventory system, the second bin is essentially a safety stock or backup stock that is used until an order for restocking arrives. Therefore, the amount contained in the second bin is equal to the reorder point, which is the amount required until an order arrives.

In a Two-Bin Inventory System,the Amount Contained in the Second