Days of Supply Is Calculated As

question 22

Multiple Choice

Days of supply is calculated as:

• A) average daily usage/inventory on hand
• B) inventory on hand/average daily usage
• C) inventory on hand * average daily usage
• D) none of the above

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used to generate wealth through investment or production.

Marginal Product

The additional output resulting from a one-unit increase in the use of a variable input, holding all other inputs constant.

Price of Labor

The compensation received by employees for their work, often influenced by factors like skill, industry demand, and geographic location.

Price of Capital

This entails the expenses linked to acquiring and utilizing capital goods, such as machinery, indicating the return investors demand for use of their capital.