Virtual Electronics Is Considering a Strategy to Charge a Very

question 467

Multiple Choice

Virtual Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Virtual Electronics has chosen a ________ strategy.

• A) high-low pricing
• B) penetration
• C) bundling
• D) skimming

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Definitions:

Inventory

The total quantity of goods and materials that a business holds for the purpose of resale or production.

Source Of Supply

The origin from which goods, services, or materials are obtained, which can influence cost, quality, and delivery time.

Square-root Rule

A supply chain principle stating that the total safety stock investment is proportional to the square root of the number of locations.

Stocking Locations

Facilities or areas where inventory is kept before being distributed to fulfill orders, essential for managing supply chains efficiently.