A standard approach to inventory management under uncertainty is to:

Question

Quizplus · Accepted Answer

Adding a safety stock to the reorder point helps to account for uncertainty in demand and lead times. This ensures that inventory levels do not fall below the desired level even if unanticipated events occur. Doubling the economic order quantity or deliberately reordering at a time when current inventory level is exceeded are not standard approaches to inventory management under uncertainty. Applying the certainty-based economic order quantity model does not take into account the unpredictability in demand and lead times, so it is not an effective approach under uncertain conditions.

A Standard Approach to Inventory Management Under Uncertainty Is To