Asked by Cydney Adger on Jun 19, 2024
Verified
What happens to the cost of the inventory policy when the service level increases?
Inventory Policy
Guidelines or rules set by a business to manage and control levels of inventory and order timings.
Service Level
A measure of the performance of a system's ability to serve customers, typically involving availability and responsiveness.
- Analyze the impact of inventory policies on service levels and total costs.
Verified Answer
IC
IGBOJEKWE CHINOMNSOJun 25, 2024
Final Answer :
The cost of the inventory policy increases dramatically with increases in service level.
Learning Objectives
- Analyze the impact of inventory policies on service levels and total costs.