The Operations Management Function Is Especially Important for All of the Following

question 29

Multiple Choice

The operations management function is especially important for all of the following reasons EXCEPT

• A) its governance of the transformation process.
• B) the integrative nature of business decision making.
• C) decreasing order response time.
• D) the responsibility for the quality of products and services produced.
• E) the responsibility for managing the largest portion of a firm's assets and people.

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Definitions:

Economic Order Quantity

A calculation used to determine the most cost-effective quantity of stock to order, balancing ordering costs with stock holding costs.

Acquisition Cost

The total expense incurred to acquire an asset, including the purchase price and all related costs.

Inventory Stock

Goods or materials that a business holds for the ultimate goal of resale.

Reorder Point

The inventory level at which action is taken to replenish a particular stock item, ensuring adequate supply while minimizing holding costs.