Which of the Following Statements Is True with Regard to DRP

question 61

Multiple Choice

Which of the following statements is true with regard to DRP?

• A)DRP is a push system because we start with the earliest stage in production and push products to the customer.
• B)DRP is a pull system because demand at the retail level pulls inventory and shipments through the supply chain.
• C)DRP is a push system because we make extensive use of demand forecasts to determine our capacity requirement.
• D)DRP is a pull system because we start with the earliest stage in production.

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Definitions:

Expected Return

This represents the mean of the probability distribution of possible returns for a security or portfolio.

Complete Portfolio

A complete portfolio represents a combination of risk-free assets and risky assets, designed to balance potential returns with the investor's risk tolerance.

Risk-Free Asset

An investment that is assumed to have no risk of financial loss, often represented by government bonds or treasury bills.

Risky Asset

An investment that holds a certain degree of risk, possibly leading to loss, such as stocks or commodities.