Which of the Following Inventory Management Systems Is Designed to Deliver

question 34

Multiple Choice

Which of the following inventory management systems is designed to deliver less merchandise on a more frequent basis?

• A)lead time
• B)radio
• C)vertical
• D)just-in-time
• E)administered

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Variable

An element, feature, or factor that is liable to vary or change; used in statistical analysis and experiments.

Output

The total amount of goods and services produced by an economy or a production process.

AFC

Average Fixed Cost (AFC) is the fixed costs of production (such as rent, salaries, machinery) divided by the quantity of output produced.