To Reduce Inventory Management Costs,many Companies Use a System Called

question 63

Multiple Choice

To reduce inventory management costs,many companies use a system called ________,which involves carrying only small inventories of parts or merchandise,often only enough for a few days of operation.

• A)just in time (JIT)
• B)supply chain management
• C)value chain management
• D)logistics management
• E)enterprise resource planning (ERP)

---

Definitions:

Total Revenue

The overall amount of money generated by a business from selling its goods or services, without subtracting any costs.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price, indicating how changes in price affect consumer demand or supply levels.

Linear Demand Curve

Represents a straight-line graph which shows the inverse relationship between the price of an item and the quantity demanded, assuming other factors remain constant.

Price Elasticity

An assessment of the responsiveness of the quantity demanded to price changes of a good.