Melvin Is Concerned About Not Having Enough Air Conditioning Units

question 198

Multiple Choice

Melvin is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Melvin is keeping

• A)short order lead times.
• B)just-in-time inventory.
• C)a controlled usage rate.
• D)safety stock.
• E)excessive inventory.

---

Definitions:

Important Factors

Important factors refer to the critical elements or aspects that significantly influence the outcome or success of a situation, project, or analysis.

Target Return

The desired profit or yield that an investor aims to achieve on an investment over a specific period.

Pricing Strategy

A plan or approach used by businesses to set prices for their products or services, aiming to achieve maximum profitability.

Sales Orientation

A business approach that focuses primarily on the sale of products or services, rather than understanding and meeting the needs of the customers.