What is the average amount of inventory held to satisfy customer demands between inventory deliveries?
A) Safety inventory
B) Cycle inventory
C) Performance inventory
D) Capacity inventory

Question

Quizplus · Accepted Answer

Cycle inventory represents the average amount of inventory held to satisfy customer demands between inventory deliveries. Safety inventory is the extra inventory held to mitigate the risk of stockouts due to unexpected events such as supplier delays or demand fluctuations. Performance inventory is a term used for the inventory held to support operational efficiency and reduce lead times. Capacity inventory refers to inventory held for maintaining production capacity. Therefore, option B is the correct answer.

What Is the Average Amount of Inventory Held to Satisfy