Figure 4-20 -Refer to Figure 4-20.If the Price Is $25,then There Would

question 105

Multiple Choice

Figure 4-20
-Refer to Figure 4-20.If the price is $25,then there would be an excess

• A)supply of 100 units,and price would fall.
• B)supply of 300 units,and price would fall.
• C)demand of 100 units,and price would fall.
• D)demand of 300 units,and price would fall.

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Definitions:

Safety Stock

Additional inventory kept to prevent stockouts caused by variations in supply or demand.

Purchased Component

A part or material acquired from an external supplier for use in the manufacturing or assembly process of a product.

Work-In-Process

Refers to partially finished goods that are in the process of being manufactured but are not yet complete.

Master Production Schedule

A detailed plan that outlines exactly what products and quantities will be produced and at what time to meet customer demand.