If a Cola Producer Bought Out a Mango Juice Producer

question 83

Multiple Choice

If a cola producer bought out a mango juice producer in an attempt to appeal to health-conscious consumers who do not drink soft drinks,it would be pursuing a ________ opportunity.

• A)market development
• B)diversification
• C)market penetration
• D)product development

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Definitions:

EOQ Model

stands for Economic Order Quantity model, a formula used in inventory management to determine the optimal order size that minimizes the total costs of holding and ordering inventory.

Inventory Carrying Cost

The total cost associated with holding inventory, including storage, insurance, taxes, depreciation, and the opportunity cost of tied-up capital.

Setup Cost

Represents the expenses involved in preparing a machine, process, or system for a manufacturing run or production activity, which can include equipment adjustments and labor.

EOQ Model

Economic Order Quantity model is used in inventory management to determine the optimal order size that minimizes the total cost of inventory, including holding costs and ordering costs.