Inventory and Safety Stock Planning ________

question 79

Multiple Choice

Inventory and safety stock planning ________.

• A) leads to the development of the overall demand forecast
• B) focuses on the coordination of all activities needed to create a product or service
• C) leads to the development of a sourcing plan
• D) focuses on delivering products or services to consumers as well as warehousing
• E) leads to the development of a transportation schedule

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Definitions:

Variable Cost

A cost that varies with the level of output or activity, such as materials and labor costs.

Operating Leverage

A financial ratio that measures the degree to which a firm or project can increase operating income by increasing revenue.

Operating Income

The income earned from a company's day-to-day operations, calculated before taking into account interest and taxes.

Margin Of Safety

The difference between actual sales and break-even sales, providing a cushion against which sales can fall before a business incurs a loss.