In the context of fixed-quantity systems,__________is defined as the on-hand quantity (OH) plus any orders placed but which have not arrived minus any backorders (BO).
A) Inventory position
B) The reorder point
C) A stock-keeping unit
D) Work-in-process inventory

Question

Quizplus · Accepted Answer

The inventory position is a measure of the total amount of inventory of a particular item that a company has at a given point in time. It is calculated as the sum of the on-hand quantity (OH), any outstanding orders (orders that have been placed but not yet received), and any backorders that have not yet been fulfilled. The inventory position is an important metric for managing inventory levels, as it helps to ensure that there is enough inventory on hand to meet customer demand, while avoiding excess inventory that can tie up capital and increase carrying costs.

In the Context of Fixed-Quantity Systems,__________is Defined as the On-Hand