Select the One Best of the Following Statements

question 20

Multiple Choice

Select the one best of the following statements:

• A) inventories allow manufacturing to level out production and to satisfy peak demand
• B) inventories allow manufacturing to reduce production runs, reducing unit cost
• C) inventories allow manufacturers to operate different work centers at the same output
• D) all the above are true
• E) none of the above is true

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Definitions:

Asset Reserved

Assets that are held or allocated for a specific purpose or future use.

Seasonal Peaks

Periods of high demand or activity in a business or market that correspond with specific seasons or times of the year.

Revenue Management

The strategic use of pricing to increase the profitability of a business by selling the right product to the right customer at the right time for the right price.

Peak Period

The time frame during which demand for a service or product is at its highest.