Eric Is Concerned About Not Having Enough Air Conditioning Units

question 240

Multiple Choice

Eric is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Eric is keeping

• A) short order lead times.
• B) just-in-time inventory.
• C) a controlled usage rate.
• D) safety stock.
• E) excessive inventory.

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Definitions:

Highly-Valued

Something considered to be of great importance or worth.

Management Skill

The ability to plan, organize, direct, and control individuals or groups of people to achieve specific goals.

Team-Oriented Organizations

Enterprises that emphasize teamwork, collaboration, and collective effort in achieving their goals and objectives.

Direct Authority

The explicit power given to an individual within an organization to make decisions, give orders, and allocate resources.