If Inventory Levels Are Stable or Increasing an Argument That

question 5

Multiple Choice

If inventory levels are stable or increasing an argument that favors the FIFO method as compared to LIFO is

• A) Income taxes tend to be reduced in periods of rising prices
• B) Cost of goods sold tends to be stated at approximately current cost in the income statement
• C) Cost assignments typically parallel the physical flow of the goods
• D) Income tends to be smoothed as prices change over time

Appreciate the role of product fill rate and order fill rate in measuring supply chain performance.

Recognize the strategies for managing supply chain risks such as demand volatility and supply uncertainties.

Grasp the concept of echelon inventory and its significance in supply chain visibility.

Understand the concepts of safety inventory and its impact on fill rate and cycle service level.

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Definitions:

Newly Industrialized

Describes countries that have moved from primarily agricultural to primarily manufacturing and industrial activities.

Human Capital

Human capital is the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Existing Technology

The current state of technological development and the tools and processes available for production.

Developing Countries

Countries characterized by their lower industrialization levels, decreased living standards, and a lesser Human Development Index in comparison to developed nations.