The _____ 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)microinventory
B)periodic inventory
C)EOQ
D)optimum stocking level

Question

Quizplus · Accepted Answer

The optimum stocking level considers various factors such as the cost of lost sales, daily sales, and the lead time required to receive inventory. It helps to determine the optimal amount of inventory to be maintained to ensure that stockouts do not occur frequently while keeping the inventory carrying costs in check. The other options (microinventory, periodic inventory, EOQ) do not address all these factors comprehensively.

The _____ Is the Amount of Inventory That Results in the Minimum