Scenario: Mark Can Make Three Tables and One Chair in a Day

question 96

Multiple Choice

Scenario: Mark can make three tables and one chair in a day, while John can make four tables and one chair in a day.
-Refer to the scenario above.Mark's opportunity cost of making a table is ________.

• A) 0.33 of a chair
• B) 1 chair
• C) 3 chairs
• D) 3.33 chairs

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Definitions:

Safety Stock

Inventory kept on hand to protect against fluctuations in demand or supply, ensuring that demand can be met without stockouts.

Lead Time

The amount of time between the initiation of a process and its completion.