The time between orders is given by the formula ELS/D. What is the significance of its inverse, D/ELS?
A) the number of orders per year
B) the time between consuming an order
C) the ratio of demand only to production and demand cycles
D) the ratio of the maximum inventory to the production quantity

Question

Quizplus · Accepted Answer

The inverse of the time between orders, D/ELS, represents the number of orders per year. This is because if ELS/D gives the time between orders, flipping the formula calculates how many orders can be placed in a given time period, effectively showing the frequency of orders per year.

The Time Between Orders Is Given by the Formula ELS/D