________ Refers to How Customers Rate the Output of an Organization's

question 71

Multiple Choice

________ refers to how customers rate the output of an organization's value chain.

• A)Inventory
• B)Sales
• C)Procurement
• D)Effectiveness

---

Definitions:

Shortage Costs

Costs incurred by a business when the demand for its products exceeds its supply, often leading to lost sales and customer dissatisfaction.

Short-term Financial Policy

Guidelines or strategies focused on managing a company's current assets and liabilities to ensure short-term operational needs are met.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and opportunity cost of tied-up capital.

Shortage Costs

Costs incurred from not having enough inventory on hand, including lost sales and emergency shipping expenses.