DOI (Days of Inventory) Is a Measure That Is Equivalent

question 25

True/False

DOI (days of inventory) is a measure that is equivalent to dividing total stock on-hand by the average demand per day.

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Definitions:

Demand Variability

Fluctuations in customer demand over a period, affecting inventory levels, supply chain strategies, and production schedules.

Sourcing Decision

The process of choosing suppliers or sources for goods and services, considering factors like cost, quality, reliability, and relationship.

Outsource

The practice of contracting work out to an external organization rather than performing it in-house.

Information

Data that has been processed in such a way that it can be used to inform decisions, strategies, and actions.