Which of the Following Is True with Regard to Inventory

question 50

Multiple Choice

Which of the following is true with regard to inventory turnover ratio?

• A)Generally,the higher a firm's inventory turnover ratio,the less time its inventory spends in storage and,therefore,the more efficient is the firm's use of the inventory.
• B)Generally,the lower a firm's inventory turnover ratio,the less time its inventory spends in storage and,therefore,the less efficient is the firm's use of the inventory.
• C)Generally,the higher a firm's inventory turnover ratio,the less time its inventory spends in storage and,therefore,the less efficient is the firm's use of the inventory.
• D)Generally,the lower a firm's inventory turnover ratio,the less time its inventory spends in storage and,therefore,the more efficient is the firm's use of the inventory.

Identify the benefits of supply chain coordination for maximizing total supply chain profits.

Understand the implications of replenishment order synchronization in multi-echelon supply chains.

Recognize the effects of trade promotions and quantity discounts on lot size and inventory levels.

Determine the total cost implications of different supply chain decisions.

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Definitions:

Marginal Social Cost

Marginal social cost is the total cost society bears for the production of an additional unit of a good or service, considering both private costs and any external costs.

Species Extinction

The permanent disappearance of a species from Earth.

Property Rights

Legal rights to possess, use, and dispose of assets, including land, buildings, and intellectual property.

Marginal Cost

The financial increase due to the production of an extra product or service unit.