The average inventory in the supply chain due to either production or purchases in lot sizes that are larger than those demanded by the customer is
A)annual inventory.
B)distribution inventory.
C)cycle inventory.
D)physical inventory.

Question

Quizplus · Accepted Answer

Cycle inventory refers to the portion of inventory that a firm purchases or produces in lot sizes that are larger than those demanded by the customer, resulting in an average inventory. This type of inventory is often also referred to as lot size inventory.

The Average Inventory in the Supply Chain Due to Either