The Common Characteristic of Multinationals That Are Organized by Function

question 92

Multiple Choice

The common characteristic of multinationals that are organized by function at the upper level is a narrow

• A) and highly integrated product mix.
• B) and highly integrated customer list.
• C) variation of prices in the product mix.
• D) research and development effort.
• E) and highly concentrated regional focus.

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Definitions:

ABC Analysis

A method for classifying inventory or items into three categories (A, B, and C) based on their importance, usually determined by value or usage rate.

Inventory Savings

Reductions in costs achieved through efficient management of stock, including ordering, storing, and using goods or materials.

Economic Order Quantity

A calculation that determines the optimal order quantity that minimizes total inventory costs, including holding, ordering, and shortage costs.

Safety Stock

An extra quantity of inventory kept on hand to prevent stockouts caused by unpredictable demand or supply delays.