Which of the Following Statements Is Correct for a Firm

question 33

Multiple Choice

Which of the following statements is correct for a firm that currently has total costs of carrying and ordering inventory that is 50 percent higher than total carrying costs?

• A)current order size is greater than optimal
• B)current order size is less than optimal
• C)per unit carrying costs are too high
• D)the optimal order size is currently being used

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Definitions:

Buyer Power

The influence that consumers have on the pricing and availability of goods and services in a market.

Loyalty Programs

Marketing strategies designed by businesses to encourage repeat customers by offering rewards, discounts, or other incentives.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, often associated with cultural and economic integration.

Competitive Forces

Elements in the external environment that influence an organization's competitive position, including competition, customer power, supplier power, the threat of new entrants, and the threat of substitute products or services.