The average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as
A)cycle inventory.
B)safety inventory.
C)seasonal inventory.
D)sourcing.

Question

Quizplus · Accepted Answer

Cycle inventory represents the average amount of inventory a company holds to meet the demand between two successive orders from suppliers. It is also known as the lot-size inventory. Safety inventory is the additional inventory held to manage unexpected demand fluctuations or supply disruptions, and seasonal inventory is the inventory purchased in advance to prepare for anticipated seasonal demand. Sourcing refers to the act of selecting suppliers and managing supplier relationships. Therefore, cycle inventory is the correct option.

The Average Amount of Inventory Used to Satisfy Demand Between