Question

The goal of a​ _______________ is to establish a stocking level that strikes the best balance between expected shortage costs and expected excess costs.

A. ​single-period inventory system
B. mixed inventory system
C. continuous inventory system
D. periodic inventory system

Answer 1

Answer: (A) Single-period

Explanation:

 The single-period inventory system is one of the type of business model that faced problem due to the product order seasonally and also the one time purchasing of the goods and the services.

The main aim of the single period inventory system is that they established stocking level that helps in balancing the expected excess costs and the shortage cost of the product.

This inventory system basically ensure that the products and the services are adequately supply to the customers.

Therefore, Option (A) is correct.