Which of the Following Statements About Inventory Management Is Correct

question 46

Multiple Choice

Which of the following statements about inventory management is correct?

• A)The economic ordering quantity is the quantity at which the total cost of carrying (holding) inventory is minimized.
• B)A firm should always order inventory in amounts sufficient to take advantage of quantity discounts.
• C)Safety stock is additional inventory that a firm carries to guard against unexpected changes in sales.
• D)To most efficiently manage its inventory, a firm should not reorder raw materials until it has no products remaining in inventory.
• E)Outsourcing is the practice of arranging for a supplier to deliver raw materials at the time they are needed in the production process.

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Definitions:

Behavioural Therapist

A mental health professional specializing in treatment methods that focus on changing maladaptive behaviors through reinforcement strategies.

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A form of psychotherapy developed by Sigmund Freud that emphasizes unconscious processes and past conflicts as determinants of behavior.

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Lysergic acid diethylamide, a powerful hallucinogenic drug known for altering perception, feelings, and thoughts.