Because of Greater Decentralization of Policy Making to the States

question 31

Multiple Choice

Because of greater decentralization of policy making to the states, it has become more important that states have strong ______ or the ability to make effective and efficient policies.

• A) mandates
• B) policy capacities
• C) division of authority
• D) policy instruments

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Definitions:

EOQ Model

The Economic Order Quantity model is used to determine the optimal order size to minimize the sum of ordering, carrying, and stockout costs.

Reorder Points

The inventory level at which a new order should be placed to replenish stock before it runs out, avoiding stockouts and production delays.

Carrying Costs

The complete expense associated with keeping inventory, encompassing storage fees, insurance, and the cost of missed opportunities.

Safety Stocks

Extra inventory kept to prevent stockouts and ensure adequate supply in the face of demand or supply variability.