Scoring the performance of suppliers in terms of replenishment lead time thus allows the firm to evaluate the impact each supplier has on

A) the cost of holding cycle inventory.
B) the cost of holding replacement inventory.
C) the purchase price of material.
D) the cost of holding safety inventory.

Question

Gracie Carrera · Accepted Answer

Final Answer : D, Explanation :  Scoring the performance of suppliers based on replenishment lead time helps the firm to evaluate the impact of each supplier on the cost of holding safety inventory. Safety inventory is the inventory that is held to meet unexpected supply chain disruptions or fluctuations in demand. Therefore, by assessing the lead time performance of suppliers, the firm can determine which suppliers are causing delays in the supply chain and resulting in higher safety inventory costs.

Scoring the performance of suppliers in terms of replenishment lead time thus allows the firm to evaluate the impact each supplier has on

A) the cost of holding cycle inventory.
B) the cost of holding replacement inventory.
C) the purchase price of material.
D) the cost of holding safety inventory.

Definitions

Learning Objectives

Learning Objectives

Related questions

Scoring the performance of suppliers in terms of replenishment lead time thus allows the firm to evaluate the impact each supplier has onA) the cost of holding cycle inventory.B) the cost of holding replacement inventory.C) the purchase price of material.D) the cost of holding safety inventory.

Definitions

Learning Objectives

Learning Objectives

Related questions