In Service Operations,what Must Managers Do to Meet Fluctuations in Demand

question 37

Multiple Choice

In service operations,what must managers do to meet fluctuations in demand?

• A)Build inventory
• B)Make product before realization of demand
• C)Rely on extra capacity
• D)Have 100% resource utilization

---

Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using a specific inventory valuation method.

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility over the goods until they are delivered to the buyer's location, at which point the buyer takes over.

Ending Inventory Balance

The value of all the unsold goods that a company has in its possession at the end of an accounting period.

Goods In Transit

Items that have been shipped by a seller but have not yet been received by the purchaser, often included in accounting considerations for inventory management.