_____ Refers to the Phenomenon in Which a Small Increase

question 27

Multiple Choice

_____ refers to the phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

• A) The multiplier effect
• B) Reciprocity
• C) Fluctuating demand
• D) Inelastic demand

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Definitions:

Review Period

a set time frame during which performance, inventory levels, or supply chain activities are assessed and evaluated for efficiency and effectiveness.

Cycle Stock

The portion of inventory that companies hold to fulfill their regular sales orders, replenishing it as it depletes.

Inventory Rate

The speed at which inventory is used and replenished over a specific period.

Lead Time

The duration between the initiation and completion of a process, like the time from placing an order to its delivery.