Question

what factors are important in choosing the length of the planning horizon for inventory planning?

Answer 1

The Factors which are important in choosing the length of the planning horizon are:

Lead Time - It is the time which is required to produce the final product that needs to be inventoried.

Demand is assumed to be fluctuating, uncertain or seasonal.

Low inventories, good labor relations, low costs, flexibility, to increase future output levels,and good customer services.

Facilities that are fixed and cannot be expanded or reduced.

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