The inventory control method that uses a targeted service level allowing for the variability of supply and demand is the:
A)ABC method.
B)economic order quantity.
C)just-in-time inventory system.
D)statistical inventory control.

Question

Quizplus · Accepted Answer

The method that uses a targeted service level allowing for the variability of supply and demand is statistical inventory control. This method uses statistical analysis to set inventory levels based on factors such as lead time, demand variability, and desired service levels. The other methods listed do not take into account variability and demand fluctuations to the same extent.

The Inventory Control Method That Uses a Targeted Service Level