Risk Pooling Enables a Lower Total Inventory Level Without Affecting

question 322

Multiple Choice

Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

• A) Inventory turnover ratio can be reduced.
• B) Aggregate demand is more accurate than disaggregate demand.
• C) The planning time fence can be adjusted as needed.
• D) The supplier shares some risk for holding inventory.

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Definitions:

Females

Refers to the sex of an organism, or part of an organism, that produces non-mobile ova (egg cells) and can typically bear offspring or produce milk for the young.

Primary Aging

The gradual, inevitable process of physical decline that occurs throughout life, regardless of health practices.

Functional

Designed to be practical and useful, rather than solely attractive.

Secondary

Refers to the second level or stage in a series or a process, often used in education to describe schools for students aged approximately 11 to 18.