What Is the Basic Activity of a Firm

question 119

Multiple Choice

What is the basic activity of a firm?

• A)To set the prices of its products as high as possible.
• B)To compete with other firms that produce similar products.
• C)To provide jobs for its employees.
• D)To use inputs to produce outputs of goods and services.

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Definitions:

Continuous Review

An inventory management approach where stock levels are constantly monitored and replenished in real-time, often automated.

Lead Time

is the total time required to manufacture an order and deliver it to the customer, encompassing all phases from order placement to final delivery.

Demand Forecasts

Predictions about future customer demand for a product or service, based on historical data, market trends, and other influencing factors.

Safety Inventory

Stock kept in reserve to protect against uncertainties in demand or supply, ensuring customer demand can be met without delays.