Which of the Following Statements Best Describes the Relationship Between

question 85

Multiple Choice

Which of the following statements best describes the relationship between order cycle time and inventory?

• A) The shorter the order cycle length, the more inventory is required to be held
• B) The shorter the order cycle length, the less inventory is required to be held
• C) The longer the order cycle length, the less inventory is required to be held
• D) The changes made to the order cycle has little/no impact on inventory levels

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Playing Golf

An outdoor game in which players use clubs to hit a small ball into a series of holes on a course in as few strokes as possible.

Sunny Days

Days characterized by sunshine, with minimal to no cloud cover, often associated with good weather.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.