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Question 98

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

    Correct Answer: B

    The shorter the order cycle length, the less inventory is required to be held. This is because a shorter order cycle means that products can be replenished more quickly, reducing the need to hold large amounts of inventory to buffer against uncertainties.

Discussion
SanakoOption: B

A&C crossout each other. B is correct.

dailong142002Option: D

order cycle–The progression used by a company starting with receipt of a customer’s order and ending with delivery to that customer. I think D

RitaaklOption: B

Answer is B

nprestel

I believe A and C are congruent making either answer correct.