Microsoft MB-335 Microsoft Dynamics 365 Supply Chain Management Functional Consultant Expert 02 31Oct2024 - Practice Quiz

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Question 1 of 30

In a manufacturing company, the supply chain manager is tasked with optimizing the inventory levels across multiple warehouses to reduce holding costs while ensuring that customer demand is met. The company uses a Just-In-Time (JIT) inventory system, which requires precise forecasting of demand. If the average monthly demand for a product is 1,200 units, and the holding cost per unit per month is $2, what is the total holding cost for maintaining an inventory level of 500 units? Additionally, how does this cost impact the decision-making process regarding inventory levels in a JIT system?

$1,000

$800

$600

$1,200

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