Figure 1: Inventory Profile for Periodic Review Policy

-What does the letter C represent in Figure 1?
A)Throughput
B)Inventory rate
C)Lead time
D)Review interval

Question

Figure 1: Inventory Profile for Periodic Review Policy
 
-What does the letter C represent in Figure 1?
A)Throughput 
B)Inventory rate 
C)Lead time 
D)Review interval

Quizplus · Accepted Answer

The letter C represents lead time, which is the time it takes for an order to be fulfilled from the point of ordering to the point of delivery. This is an important factor to consider when setting the review interval for a periodic review policy.