The situation when inventories are held at more than one location in a company's outbound distribution supply chain is referred to as:
A)A-B-C classification for inventory management.
B)order up to level inventory management.
C)economic production quantity inventory planning.
D)multi-echelon inventory management.
E)basic economic order quantity inventory model.

Question

Quizplus · Accepted Answer

The situation described is known as multi-echelon inventory management, which involves managing inventory at multiple locations in the outbound distribution supply chain in order to optimize overall inventory levels and minimize costs. Option A refers to a method of classifying inventory items based on their level of importance, while options B, C, and E all refer to specific inventory management techniques for a single location, rather than multiple locations.

The Situation When Inventories Are Held at More Than One