Both Continuous Replenishment and Build-To-Order Help to Eliminate Unnecessary Inventory

question 30

True/False

Both continuous replenishment and build-to-order help to eliminate unnecessary inventory.

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Definitions:

Safety Inventory

Extra stock kept on hand to protect against stockouts caused by variability in demand or supply.

Safety Inventory

A stock buffer maintained to mitigate risk of stockouts due to demand variability and supply chain uncertainties.

Lead Time

The duration between the initiation and completion of a process, such as the time from placing an order to its delivery.

Standard Deviation

A measure of the dispersion or variability within a set of data points, indicating how much variation exists from the average.