Which of the Following Is NOT One of the Five

question 20

Multiple Choice

Which of the following is NOT one of the five basic approaches to managing demand?

• A)Taking no action and leaving demand to find its own levels.
• B)Reduce demand in peak periods.
• C)Increase demand when there is excess capacity.
• D)Inventory capacity until demand increases.
• E)Inventory demand by creating a formalized queuing system.

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Definitions:

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, and habits.

Risk-loving

Refers to a preference for risk when making choices under uncertainty, where a greater level of risk is associated with the potential for higher rewards.

Negative Expected Value

A statistical condition where the anticipated result of an investment is less than the initial cost.

Moral Hazard

The risk that one party to a transaction has not entered into the contract in good faith or has an incentive to take unusual risks because the costs are not borne by that party.