Limitations of the Quantitative Management Perspective Include All of the Following

question 94

Multiple Choice

Limitations of the quantitative management perspective include all of the following EXCEPT

• A)difficult to apply.
• B)cannot fully explain or predict the behavior of people in organizations.
• C)mathematical sophistication may come at the expense of other important skills.
• D)models may require unrealistic assumptions.
• E)models may require unfounded assumptions.

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Definitions:

Economic Order Quantity

A formula used to determine the most cost-effective quantity to order stock, minimizing both ordering and holding costs.

Carrying Costs

Expenses associated with holding inventory, such as storage, insurance, and opportunity costs.

Safety Stock

A quantity of inventory kept on hand as a precaution against fluctuations in demand or supply, ensuring the mitigation of stockout risks.

Pull Method

A manufacturing and inventory strategy where production is based on customer demand rather than forecasting.