Which of the Following Can Help Solve the Moral Hazard

question 55

Multiple Choice

Which of the following can help solve the moral hazard inherit in the employer-employee relationship:
i. higher wages
ii. more monitoring
iii division of employee responsibilities:

• A) (i) and (i) anly
• B) (ii) and (ii) any
• C) (i), (ii) and (ii)
• D) (ii) any

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Definitions:

Safety Inventory

Additional inventory kept to protect against variability in demand or supply, ensuring that stockouts are minimized.

Cycle Service Level

A measure of a company's ability to deliver products to customers within the committed time frame, often used as an indication of inventory management effectiveness.

Fill Rate

The percentage of customer demand that is met without backorders or stockouts, reflecting a company's ability to satisfy orders with available inventory.

Customer Fill Rate

A measure of the ability of a supply chain to deliver the requested product in the quantity and time agreed upon by the customer.