The General Tendency Toward Increasing Variation in Demand and Inventory

question 84

Multiple Choice

The general tendency toward increasing variation in demand and inventory levels as we move further away from the end customer in the supply chain is referred to as

• A) bull- whip effect.
• B) internally generated shortages.
• C) capacity cushions.
• D) continuous replenishment.

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Definitions:

Authorized

Officially sanctioned or given permission, often used in the context of legal or financial matters to indicate approved actions or processes.

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, which may differ from its market value.

Entity

An organization or being with a distinct and independent existence, usually referred to in legal, financial, or tax contexts.

No-Par Value Stock

Capital stock that has not been assigned a value in the corporate charter.