Improvement of the Supply Chain as a Result of Increased

question 35

Multiple Choice

Improvement of the supply chain as a result of increased visibility means that

• A)bottlenecks can be identified.
• B)bottlenecks disappear.
• C)bottlenecks can not be identified.
• D)none of the above

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Definitions:

Fixed-Period Inventory System

An inventory control system where orders are made at fixed intervals, but the order quantity varies based on demand.

Safety Stock

Additional inventory held to guard against stockouts, ensuring that a sufficient quantity of goods is available to meet demand fluctuations.

Review Period

The time interval between evaluations or assessments of a project, process, or system to ensure it meets its objectives and to identify necessary adjustments.

Optimal Order Quantity

The most cost-efficient quantity of items to order that minimizes holding costs and ordering costs in inventory management.