The calculation of inventory availability requires knowledge of: (i)current levels of stock on hand (ii)stock on order (iii)stock promised to customers (iv)supplier lead time.
A)(i)(ii)only
B)(i)(ii)(iv)only
C)(i)(ii)(iii)only
D)(i)(ii)(iii)(iv)

Question

Quizplus · Accepted Answer

To calculate inventory availability, all four factors (current levels of stock on hand, stock on order, stock promised to customers, and supplier lead time) are necessary. Current levels of stock on hand and stock on order provide information on how much inventory is available or will be available in the near future. Stock promised to customers represents the outstanding orders that are yet to be fulfilled, which could impact inventory availability. Supplier lead time indicates the time it takes for inventory to be replenished, which affects when inventory will be available again. Therefore, option D, which includes all four factors, is the best choice.

The Calculation of Inventory Availability Requires Knowledge Of: (I)current Levels