If Demand Is Not Uniform and Constant, Then Stockout Risks

question 66

Multiple Choice

If demand is not uniform and constant, then stockout risks can be controlled by

• A) increasing the EOQ
• B) placing an extra order
• C) raising the selling price to reduce demand
• D) adding safety stock
• E) reducing the reorder point

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Definitions:

Initial Compliance

The initial willingness to go along with a request or follow a rule or guideline, often before any form of resistance or refusal is considered.

Personal Responsibility

The concept of acknowledging and accepting the choices one makes and the consequences that follow.

Authority Figure

An individual who holds power or influence in a societal structure, often seen as a source of guidance or enforcement of rules and standards.

Social Facilitation

The improvement in performance observed when an individual performs in the presence of others as opposed to when they are alone.