What Does It Mean for Demand to Be Unitary

question 71

Multiple Choice

What does it mean for demand to be unitary?

• A) Prices go up or down, but revenues remain about the same.
• B) Prices remain the same, but revenues go up and down.
• C) Prices and revenue change unpredictably.
• D) There is never a change in price or revenue.

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Definitions:

Safety Stock

Additional quantity of an item held in inventory to reduce the risk of stockouts caused by variability in supply or demand.

Stockouts

Occurrences when demand exceeds supply, resulting in an inability to fulfill customer orders or requirements immediately.

Inventory Carrying Costs

The total cost associated with holding inventory, including storage, insurance, depreciation, and opportunity costs.

Standard Deviation

An index indicating the degree of spread or diversity among values in a dataset.