Question

Define a two-bin system. Multiple choice question. It specifies the amount of risk of incurring a stockout that a firm is willing to incur. It is a system in which the inventory of an item is stored in two different locations. It is a method of estimating the impact of changing the number of locations on the quantity of inventory held. It is a model used to determine the order size for a one-time purchase.

Answer 1

It is a system in which the inventory of an item is stored in two different locations.

Step-by-step explanation:

Two-bin inventory control is a system in which it measures the items when they are used for production and then could be replenished. Here the items that should be in first bin should be depleted and there is an order for refill or replacing. And, then the second bin should have sufficient items till the order of first bin arrived

So as per the given situation, the above statement should be considered