Aaron Attends a Seminar on Just-In-Time Inventory Management

question 245

Multiple Choice

Aaron attends a seminar on just-in-time inventory management. Excited about the idea, he returns to his office at Atlanta Auto Supply to start designing such an inventory system. Which of the following steps must Aaron take as he institutes this change?

• A) Increase safety stock
• B) Raise the reorder point
• C) Reduce customer service standard
• D) Increase order frequency
• E) Reduce estimates of inventory turnover rate

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Definitions:

Behavior

The actions or reactions of an organism, often in relation to its environment, which can be observable and measurable.

Arousal Theory

A theory in psychology that suggests people are motivated to maintain an optimal level of arousal, not too high or too low, for their personal best performance.

Excitement

A feeling of great enthusiasm and eagerness, often accompanied by physiological signs such as increased heart rate and heightened senses.

Boredom

A state of feeling disinterested or unengaged with one's current activity or surroundings.