Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Our platform offers a seamless experience for finding reliable answers from a network of experienced professionals. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

The lowest inventory level at which a new order must be placed to avoid a stockout is known as the replenishment threshold?

Sagot :

Parrain

It is true that the lowest inventory level to avoid a stockout is the Replenishment threshold.

It is very important that stock is purchased at the right time for a company because:

  • It ensures that demand for goods and services can be met
  • It ensures that storage costs are not too high from ordering at times when goods not needed
  • It ensures that goods are not damaged by being stored for too long

The Replenishment threshold is one of the tools that can help a company know when to order supplies because it is the lowest point where they know that they can get to before ordering more supplies.

In conclusion, knowing your replenishment threshold is very important in business because it ensures that you order at the right time to avoid problems with either not having enough stock or holding too much stock.

Find out more at https://brainly.com/question/16209393.

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.