In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be

Question

Korolek [52]

2 years ago

10

In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be

increased if stockout risk is to remain unchanged.

Business

1 answer:

Angelina_Jolie [31] · Answer 1 · 2022-09-07T22:37:04+03:00

Answer:

Safety stock

Explanation:

Safety stock defines When the lead time for delivery of the item rises in a typical inventory reordering situation, the safety stock would need to be increased if the possibility of stockout is to remain unchanged.

Therefore, according to the given situation the correct answer is safety stock as The lead time of the item improves, the safety stock would need to be increased if the risk of stockout inventory remains the same