Which of the Following Statements Is Correct for a Firm

question 33

Multiple Choice

Which of the following statements is correct for a firm that currently has total costs of carrying and ordering inventory that is 50 percent higher than total carrying costs?

• A)current order size is greater than optimal
• B)current order size is less than optimal
• C)per unit carrying costs are too high
• D)the optimal order size is currently being used

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Definitions:

Organizational Survival

The ability of a company or institution to continue to exist and operate over time, overcoming challenges and adapting to changes.

Turbulent Environment

A dynamic and unpredictable external business environment characterized by rapid changes and uncertainties.

General Environment

The broad external conditions (economic, technological, sociocultural, and political/legal) that affect organizations and their functioning.

Specific Environment

The external factors and influences that are directly relevant and impactful to an organization's operations, including competitors, customers, and suppliers.