Technician a Assumes a Replacement Part Is Good Just Because

question 7

Multiple Choice

Technician A assumes a replacement part is good just because it is new. Technician B says that sometimes recent repair work will be the cause of a complaint. Which technician is correct?

• A) Technician A only
• B) Technician B only
• C) Both technicians A and B
• D) Neither technician A nor B

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Definitions:

Ordering Cost

Expenses associated with placing and receiving orders for goods or supplies, including administrative and staffing costs.

Holding Cost

The expenses associated with storing inventory that is not yet sold or utilized, including storage, insurance, and obsolescence costs.

Annual Demand

The total quantity of a product or service that is demanded over the course of a year.

Salvage Value

The estimated resale value of an asset at the end of its useful life.