To Increase Profitability,top Management of a National Retailer Needs to Decide

question 40

Multiple Choice

To increase profitability,top management of a national retailer needs to decide if it will close several stores.Management knows that by closing the locations,it will save the company millions of dollars and benefit many stockholder groups and individuals,compared to keeping those stores open and benefiting fewer people.This logic is an example of the ___ approach.

• A)individual
• B)majority
• C)utilitarian
• D)justice
• E)moral-rights

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Definitions:

Pilferage

A small amount of theft.

Holding Costs

Expenses related to keeping inventory in storage, including warehousing, insurance, and spoilage costs, which are part of the overall inventory carrying costs.

Safety Stock

Additional inventory beyond the expected demand, held to guard against variability in market demand or supply chain disruptions.

ABC Analysis

A method of categorizing inventory into three classes (A, B, and C) based on their importance, with A being the most valuable and C being the least.