According to the Law of Demand, One Way to Reduce

question 88

Multiple Choice

According to the law of demand, one way to reduce the amount of tobacco consumption is to

• A)lower the price of tobacco.
• B)raise the price of tobacco.
• C)subsidize users of tobacco.
• D)subsidize treatments of diseases related to tobacco consumption.
• E)make tobacco consumption illegal.

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Definitions:

Safety Stock

Extra inventory kept on hand to mitigate the risk of stockouts due to uncertainties in supply or demand.

MRP

Stands for Material Requirements Planning, a system for calculating the materials and components needed to manufacture a product.

Finished Assemblies

Finished Assemblies are completed products that have been assembled from individual components and are ready for sale or use.

Pegging

In material requirements planning systems, tracing upward in the bill of material from the component to the parent item.