Answer:
Lead Time
Holding cost
Explanation:
Two factors that should be considered in determining the level of inventory to keep in stock of an item at a store are the lead time and Holding cost
Lead time : Lead time is defined as the length of time between when an order for an item is placed and when it is delivered . This is very important in order to avoid down time during operation , To this effect , an adequate level of inventory that should last the operation during the lead time should be kept in stock as re-order level
Holding cost : This is the cost involved in keeping inventory in stock . Being a variable cost , the higher the volume of inventory , the higher the cost. This cost should be considered alongside other operation related factors like the lead time factors to ensure that its effect on the net income of the company is not overwhelming.
