The ____ Strategy Avoids the Risks and Responsibilities of Investment

question 81

Multiple Choice

The ____ strategy avoids the risks and responsibilities of investment timing because the stock purchases are made regularly regardless of the price.

• A)dollar-cost averaging
• B)asset allocation
• C)modern portfolio theory
• D)portfolio diversification

---

Definitions:

Customer Fill Rate

A measure of the ability of a supply chain to deliver the requested product in the quantity and time agreed upon by the customer.

Safety Inventory

Additional stock that is kept in inventory to protect against uncertainties in demand or supply.

Replenishment Cycles

The process and timing involved in restocking goods or inventory to maintain adequate supply levels.

Cycle Service Level

The probability that a demand during a replenishment cycle will be fully met without stocking out.