Because of Uncertainty of Demand, a Firm May Choose to Hold

question 58

Multiple Choice

Because of uncertainty of demand, a firm may choose to hold an additional amount of inventory called:

• A) re-order stock.
• B) transit stock.
• C) safety stock.
• D) economic order quantity stock.

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Definitions:

Global Body

An international organization or entity that operates across multiple countries with a worldwide influence or governance.

Enforce Decisions

The act of implementing or ensuring compliance with decisions made by a person or body with authority.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, leading to increased interconnectedness and exchange of goods, services, ideas, and culture.

Immigrant Workers

Individuals who have migrated from one country to another for the purpose of seeking employment.