The primary role of cycle inventory is to allow different stages in the supply chain to
A)purchase product in lot sizes that maximize the sum of the material,ordering,and holding cost.
B)purchase product in lot sizes that minimize the sum of the material,ordering,and holding cost.
C)sell product in lot sizes that maximize the sum of the material,ordering,and holding cost.
D)sell product in lot sizes that minimize the sum of the material,ordering,and holding cost.

Question

Quizplus · Accepted Answer

The primary role of cycle inventory is to balance the tradeoff between material, ordering, and holding costs. Therefore, the goal is to minimize the sum of these costs, which is achieved by purchasing product in lot sizes that minimize the total cost.

The Primary Role of Cycle Inventory Is to Allow Different