All of the Following Are Reasons Why a Company Might

question 149

Multiple Choice

All of the following are reasons why a company might carry a safety stock except:

• A) a buffer against unexpected increases in demand
• B) a contingency against the uncertainty about lead time
• C) a strategy to lower the carrying cost of inventory
• D) a way of softening the impact of sudden unavailability of stock from suppliers

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Definitions:

New-Product Development

The act of conceptualizing, developing, and introducing a novel product or service to the marketplace.

Screening and Evaluation

The process of assessing various options or candidates based on set criteria to identify the most suitable choices.

Simulated Test Markets

Experimental marketing techniques that replicate the conditions of a full-scale market test for products or services in a controlled environment.

Behavioral Intention

An individual's plan or likelihood to perform a specific action or behavior, often used as a predictor of actual behavior in studies.