Twin Goals of Inventory Management Are (1) to Ensure That

question 48

True/False

twin goals of inventory management are (1) to ensure that the inventories needed to sustain operations are available, but (2) to hold the costs of ordering and carrying inventories to the lowest possible level.

---

Definitions:

Market Price

The amount of money a buyer is willing to pay and a seller is willing to accept for a good or service in a competitive market.

Shortage

A market condition in which the demand for a product or service exceeds its supply, often leading to higher prices.

Binding Price Ceiling

A government-imposed price limit on goods or services that is set below the market equilibrium price, leading to shortages.

Price Paid

The amount of money exchanged for a good or service in a transaction.