Over Time, External Monitoring Processes Should Capture Information About the External

question 30

True/False

Over time, external monitoring processes should capture information about the external environment in a format that can be referenced across the organization as threats emerge and for historical use.

---

Definitions:

Annual Demand

The total quantity of a product or service that consumers are willing and able to purchase over a year.

Safety Stock

Additional quantity of an item held in inventory to reduce the risk of stockouts caused by variability in supply or demand.

Stockouts

Occurrences when demand exceeds supply, resulting in an inability to fulfill customer orders or requirements immediately.

Inventory Carrying Costs

The total cost associated with holding inventory, including storage, insurance, depreciation, and opportunity costs.