Which of the Following Is an Ingredient Necessary to Form

question 54

Multiple Choice

Which of the following is an ingredient necessary to form a contract?

• A) exemption clauses
• B) assignment
• C) capacity
• D) privity
• E) fairness

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Definitions:

ESC (Expected Shortage per Cycle)

The average amount of inventory shortage anticipated during a single replenishment cycle in inventory management.

Lot Size

The quantity of items that are processed, manufactured, or purchased at one time.

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out, considering lead times.

Average Inventory

The mean amount of inventory held over a specific period, used to calculate turnover rates and order quantities.