Individual Links in the Supply Chain Can Stabilize Their Production

question 16

Multiple Choice

Individual links in the supply chain can stabilize their production at the most efficient level by using:

• A)safety stock.
• B)anticipation inventory.
• C)linkage inventory
• D)smoothing inventory.

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Definitions:

Capital Market Instruments

Financial securities used in the capital markets to raise funds or investment, including stocks, bonds, debentures, and other vehicles.

Commercial Loan

A debt-based financial agreement between a business and a financial institution, used for funding major capital expenditures or operational costs.

Money Market Mutual Funds

Money Market Mutual Funds are investment funds that invest in short-term debt securities and aim to provide returns with minimal risk.

Indirect Finance

Indirect finance occurs when borrowers and lenders exchange funds through an intermediary, usually a bank or financial institution, rather than directly between themselves.