Increasing Inventories Between Sequential Work Units Tends to Reduce Potential

question 36

Multiple Choice

Increasing inventories between sequential work units tends to reduce potential conflict by:

• A)reducing resource scarcity.
• B)reducing differentiation.
• C)increasing the required level of communication between employees in sequential units.
• D)reducing ambiguity in resource allocation.
• E)reducing task interdependence.

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Definitions:

Resource Investments

The allocation of resources, such as time, money, or materials, into projects or activities with the expectation of achieving returns.

Backward Integration

A business strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain, thereby controlling production of its supplies.

Acquires Suppliers

The process by which a company takes over or purchases its suppliers to control the supply chain.

Unrelated Diversification

A corporate strategy where a company expands into areas or industries that are not related to its current business or products.