A(n)_____ is the amount of inventory that results in the minimum cost,considering the cost of lost sales resulting from running out of stock,the number of units sold per day,and the number of days required to receive inventory.
A) optimum stocking level
B) periodic inventory
C) economic order quantity
D) micro inventory

Question

Quizplus · Accepted Answer

The optimum stocking level takes into account various factors such as the cost of lost sales, number of units sold per day, and lead time to replenish inventory. It helps in minimizing the total cost of inventory while ensuring that enough stock is available to meet demand. Periodic inventory is a method of taking inventory at fixed intervals, while economic order quantity is the order quantity that minimizes total inventory costs. Micro inventory is not a recognized term in inventory management.

A(n)_____ Is the Amount of Inventory That Results in the Minimum