Critical Thinking Questions (Multiple Choice) Which of the Following Is

question 162

Multiple Choice

Critical Thinking questions (Multiple Choice) Which of the following is an example of operational planning?

• A) Planning an organization's long-range goals for profitability
• B) Identifying incremental goals that can be achieved in a year or less
• C) Completing activities that make day-to-day systems run smoothly
• D) Planning an organization's long-range goals for market share

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Definitions:

Carrying Cost

The total cost of holding inventory, including storage, maintenance, and insurance.

Ordering Cost

The expenses incurred in placing and processing orders to suppliers.

EOQ Model

Economic Order Quantity Model, an inventory management formula that determines the optimal order size to minimize the sum of ordering, carrying, and stockout costs.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components or finished goods held in stock.