Decoupling Inventories Are Carried

question 10

Multiple Choice

Decoupling inventories are carried:

• A)to cover a well-defined future need.
• B)to make it possible to carry on activities on each side of a major process linkage point independently of each other.
• C)to stock the distribution pipelines.
• D)to protect against machine breakdown.
• E)to protect against uncertainties in supply and demand.

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Definitions:

Incomes

Funds earned, frequently in a regular pattern, whether from occupational activities or investments.

Demand

The quantity of a good or service that consumers are willing and able to purchase at different prices during a specific time period.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change in response to a change in price.

Price Elasticity

A tool for measuring how changes in price impact the demand for a particular item.