An ideal situation is where a business receives new inventory just as the last unit of the previous order is sold.However,this rarely occurs because the:
A) inventory level is not affected by demand.
B) delivery times never fluctuate.
C) sales volumes are not constant.
D) estimate never exceeds demand.

Question

Quizplus · Accepted Answer

Sales volumes are not constant, which means that demand fluctuates and cannot always be accurately predicted. This makes it difficult to synchronize inventory levels with demand and is the main reason why the ideal situation rarely occurs. Choices A and B are incorrect as inventory levels and delivery times are both affected by demand and can fluctuate. Choice D is also incorrect as estimates can often exceed demand, especially if there is a sudden change in market conditions or if the business experiences unexpected sales.

An Ideal Situation Is Where a Business Receives New Inventory