Register
In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be increased if stockout risk is to remain unchanged.
151k views
3 votes
In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be increased if stockout risk is to remain unchanged.

User TechWatching
by
3.0k points

1 Answer

4 votes

Answer:

Safety stock

Explanation:

Safety stock defines When the lead time for delivery of the item rises in a typical inventory reordering situation, the safety stock would need to be increased if the possibility of stockout is to remain unchanged.

Therefore, according to the given situation the correct answer is safety stock as The lead time of the item improves, the safety stock would need to be increased if the risk of stockout inventory remains the same

User Wikser
by
3.2k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

3.5m questions

4.5m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
Andrew doesn’t want to spend a lot of money on student loans, and does not qualify for grants. what is his best option for affording a bachelors degree
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
Link Copied!