Chikashi, a Manager at a Hotel, Decided to Launch a New

question 19

Multiple Choice

Chikashi, a manager at a hotel, decided to launch a new type of cuisine in his restaurant because the restaurant was incurring losses due to negative feedback on its existing cuisine. He had to make a decision immediately to improve the situation and was aware of the possible consequences of his actions. Chikashi had to make the decision in a(n) _____ environment.

• A) uncertain
• B) risk
• C) certain
• D) secure
• E) anticipated

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Definitions:

Inventory

The total quantity of goods and materials held in stock by a business, warehouse, or retail location.

Overstocking

The practice of holding more inventory than is necessary, often leading to excess stock that is difficult to sell.

Understocking

The condition where the inventory levels are too low, risking stockouts, lost sales, and dissatisfied customers.

Demand Mean

The average demand over a specified period of time.