If a Safety Stock Problem Includes Parameters for Average Daily

question 51

Short Answer

If a safety stock problem includes parameters for average daily demand, standard deviation of demand, and lead time, then ________ is variable and ________ is constant.

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Definitions:

Inventory Period

The average time it takes for a company to sell its inventory and convert it into sales.

Payables Period

The average amount of time it takes for a business to pay its invoices and bills to suppliers.

Payables Period

The average period of time it takes for a business to pay off its debts to suppliers.

Credit Sales

Sales transactions where the payment is deferred, allowing the buyer to pay at a later date.