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Which of the following best describes available inventory (also known as inventory position)?
Suggested Answer: B
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Available inventory (or Inventory position - IP) is equal to inventory on-hand plus quantity on order minus backorder (if any)
LO 2, AC 2.3
34 comments · newest first
WH
Whitley
11 months ago
A is just part of the picture, though.
VI
Vincent
11 months ago
Wait, is it really that simple?
VI
Vilma
12 months ago
I agree, B is the right choice!
AN
Anglea
12 months ago
I thought it was just what's on hand.
MO
Monroe
1 year ago
It's definitely the amount on hand plus what's on order!
PA
Patria
1 year ago
I definitely recall that available inventory is more than just what's physically in the warehouse. I think it has to do with both on-hand and on-order, so B seems right to me.
CR
Crista
1 year ago
I feel like I might be mixing up definitions. Wasn't there something about excess inventory being related to demand? That could be option D, but I’m not confident.
BO
Bobbie
1 year ago
I remember a practice question that mentioned inventory position as the sum of on-hand and on-order stock. That makes me lean towards option B.
AN
Anglea
1 year ago
I think available inventory refers to the total stock we have, but I'm not sure if it includes what's on order too.
AL
Allene
1 year ago
I'm a little confused by the wording of this question. Is available inventory the same as inventory position? I'll have to double-check my notes to make sure I understand the difference.
EL
Elbert
1 year ago
Okay, I've got this. Available inventory is the total amount of inventory on hand plus any inventory that's been ordered but not yet received. Option B looks like the best answer.
MA
Martha
1 year ago
Hmm, I'm a bit unsure about this one. I know inventory position is important, but I'm not totally clear on the exact definition. Let me think it through step-by-step.
SU
Suzi
1 year ago
This seems like a straightforward question about inventory management. I'll carefully read through the options and think about the key concepts.
DY
Dyan
1 year ago
I feel pretty confident about this one. The key phrase in the definition is "perform its required functions under stated conditions for a specified period of time." That sounds like it's describing reliability, so I'm going to select option C.
NI
Nilsa
2 years ago
C seems a bit too narrow. Inventory position should reflect the full supply picture.
MA
Marcos
2 years ago
I'm going with B. Gotta keep track of the whole picture to manage stock effectively.
TA
Tamesha
2 years ago
Haha, I bet the correct answer is 'all of the above' - inventory management is never that straightforward!
MI
Mike
2 years ago
D) The amount of inventory on hand in excess of expected demand
JE
Jennifer
2 years ago
C) The amount of inventory on order only
MA
Marla
2 years ago
B) The amount of inventory on hand plus the amount of inventory on order
BU
Buck
2 years ago
A) The amount of inventory on hand
FR
Francine
2 years ago
I think the answer is A) The amount of inventory on hand, as that seems like the most basic definition.
GE
Gene
2 years ago
D is definitely not right - that's just excess inventory, not the overall position.
JO
Johnna
2 years ago
B) The amount of inventory on hand plus the amount of inventory on order
SU
Susy
2 years ago
A) The amount of inventory on hand
DE
Destiny
2 years ago
B) The amount of inventory on hand plus the amount of inventory on order
KA
Kate
2 years ago
A) The amount of inventory on hand
MA
Margarita
2 years ago
I'm not sure, but I think it might be D) The amount of inventory on hand in excess of expected demand.
FL
Fletcher
2 years ago
I agree with Wilburn, because it gives a more comprehensive view of the inventory position.
GR
Graciela
2 years ago
Option B seems the most comprehensive to me. Inventory position should account for both what's on hand and what's on order.
KR
Kris
2 years ago
Definitely, knowing the total inventory position helps in making informed decisions about ordering and stocking levels.
JU
Juliana
2 years ago
Yes, having visibility into both current inventory and future inventory is crucial for effective inventory management.
IV
Ivette
2 years ago
I agree, option B is the most comprehensive. It's important to know both what's on hand and what's on order.
WI
Wilburn
2 years ago
I think the answer is B) The amount of inventory on hand plus the amount of inventory on order.