-Refer to the Figure Above

question 21

Multiple Choice

-Refer to the figure above. If C3 opened, Vout would

• A)increase.
• B)decrease.
• C)remain the same.
• D)distort.

---

Definitions:

Safety Stock

A quantity of inventory kept on hand as a precaution against fluctuations in demand or supply, ensuring the mitigation of stockout risks.

Pull Method

A manufacturing and inventory strategy where production is based on customer demand rather than forecasting.

Work-In-Process Inventory

Goods that are in various stages of the production process but are not yet completed.

Non-Value-Added Cost

Expenses that do not contribute to the value or functionality of a product or service, often targeted for reduction or elimination.