Which of the Following Decisions Does a Firm Need to Make

question 129

Multiple Choice

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?

• A)Target high value-adding activities to further enhance their value.
• B)Target low value-adding activities to increase their value.
• C)Perform some combination of the two.
• D)All of the above.

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Definitions:

Fixed Quantity Systems

Inventory control systems where a fixed amount of inventory is reordered when stock levels reach a certain point.

Fixed Period Systems

An inventory management strategy where orders are placed at fixed intervals, regardless of the current stock level.

Perpetual Inventory System

A system that keeps track of each withdrawal or addition to inventory continuously, so records are always current.

Buffer Stock

An inventory reserve kept on hand to protect against variability in demand or supply.