Which One of the Following Statements About Anticipation Inventory Is

question 45

Multiple Choice

Which one of the following statements about anticipation inventory is TRUE?

• A) It is a portion of inventory that is used to absorb only the variation in demand.
• B) It is a portion of inventory that is used to absorb variation in demand or supply.
• C) It is a portion of inventory that is reserved for the best customer.
• D) It is a portion of inventory that is used to absorb only the variation in supply.

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Definitions:

Customer Base

The group of consumers who repeatedly purchase the goods or services of a business, forming its main source of revenue.

Channel Sales Representatives

New-business sales representatives who focus on securing new distribution channel outlets.

Order-Takers

Individuals or employees within a company responsible for taking orders from customers but not actively involved in sales solicitation.

Advantages

In the FAB sales approach, general statements about what the features do; they may or may not be connected to an expressed or actual customer need.