E&OE Is Trying to Minimize Its Inventory Costs, Which Are

question 132

Multiple Choice

E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing more only once a product is ordered. Which of the following is true for E&OE?

• A) Inventory costs are lower than order-processing costs.
• B) Running costs are higher than inventory-carrying costs.
• C) Setup costs for the products are low.
• D) Order-processing costs are high.
• E) Order-processing costs are lower than setup costs.

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Definitions:

Individualism

Societal structure and world view in which people prioritise standing out as an individual over fitting in as a group member.

Humanistic Manner

An approach in psychology that emphasizes empathy and stresses the good in human behavior.

Functioning Family Structures

Functioning family structures refer to family units that effectively provide emotional, physical, and social support among their members, facilitating healthy development.

Hunter-Gatherer

Refers to humans who subsist by hunting, fishing, and foraging for wild foods, representing the primary lifestyle of human communities before the adoption of agriculture.