Inventory Needs Under a Derived-Demand Inventory System Are

question 28

Multiple Choice

Inventory needs under a derived-demand inventory system are:

• A)primarily dependent upon the competitive demands placed on a firm's suppliers.
• B)based on the anticipated demand for the finished product.
• C)based on minimizing the cost of restocking inventory.
• D)held constant over time.
• E)determined by a kanban system.

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Definitions:

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit, often through the acquisition of assets.

Government Spending

Expenditures made by the government for its operations, provision of public services, or to stimulate the economy.

Imports

Products and offerings imported from foreign countries for the purpose of being sold.

Government Purchases

Expenditures made by the government for goods and services including infrastructure, public services, and national defense.