A Low Number of Days in Inventory May Indicate All

question 56

Multiple Choice

A low number of days in inventory may indicate all of the following except

• A)Sales opportunities may be lost because of inventory shortages.
• B)There is less chance of having obsolete inventory items.
• C)The company has fewer funds tied up in inventory.
• D)Management has achieved the best balance between too much and too little inventory levels.

Comprehend the functioning and variations of the operating cycle in merchandising companies.

Understand the significance and formulation of gross profit in financial statements.

Understand the formulation of linear optimization models including objective functions, decision variables, and constraints.

Apply linear programming concepts to solve real-world optimization problems using tools like Excel Solver.

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Definitions:

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Competitive Scope

The breadth of the field or market in which a company competes, including geographical reach, product range, and target customer segments.

Organizational Structure

The system of roles, responsibilities, and communication within a company, determining how activities are directed to achieve its objectives.

Geographical Distribution

The physical locations where a population, species, or commercial activity is found or targeted.