Which of the Following Statements Regarding Control of Service Inventories

question 133

Multiple Choice

Which of the following statements regarding control of service inventories is true?

• A) Service inventory is a fictional concept, because services are intangible.
• B) Service inventory needs no safety stock, because there's no such thing as a service stockout.
• C) Effective control of all goods leaving the facility is one applicable technique.
• D) Service inventory has carrying costs but no setup costs.
• E) Good personnel selection, training, and discipline are easy.

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Definitions:

Market Potential

The estimated maximum total sales revenue of all suppliers for a specific product in a market.

GDP

Gross Domestic Product, a measure of a country's economic performance, representing the total value of all goods and services produced over a specific time period.

GNI

Gross National Income, a measure of a country's income, including domestic production and foreign investments, used to estimate the economic health of a nation.

Tariff

A tax levied on a good imported into a country; also called a duty.