The Opportunity Cost of an Activity Is

question 24

Multiple Choice

The opportunity cost of an activity is

• A)zero if you choose the activity voluntarily
• B)the amount of money spent on the activity
• C)the value of the best alternative not chosen
• D)the sum of benefits from all of the sacrificed alternatives
• E)the difference between the benefits and the costs of that activity

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Definitions:

Supply Chain Coordination

The synchronized efforts of all entities involved in a supply chain to ensure efficient and effective operations.

Performance Measures

Metrics or indicators used to assess the efficiency, effectiveness, and quality of operations and services within an organization.

Inventory Assignment

The process of allocating or designating specific quantities of inventory to particular orders, locations, or purposes.

Bullwhip Effect

A phenomenon in supply chain management where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand upstream.