If Aggregation Reduces the Required Safety Inventory for a Product

question 7

True/False

If aggregation reduces the required safety inventory for a product by a small amount,it may be best to carry the product in multiple decentralized locations to reduce response time and transportation cost.

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Definitions:

Preexisting Duty Rule

A principle in contract law that holds an existing duty does not constitute consideration for a new promise.

Unforeseen Circumstances

Events or conditions that could not have been reasonably anticipated and that may affect the performance of contractual obligations.

Ethical

Pertaining to or dealing with morals, the principles of morality concerning right and wrong or good and bad behavior.

Illusory Promise

A statement that appears to be a promise but is too vague or lacks commitment to be legally binding and enforceable as a contract.