An Intelligence System That Helps Managers Assess Their Competition and Vendors

question 196

Multiple Choice

An intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors is called:

• A) competitive research
• B) competitive intelligence
• C) industrial espionage
• D) an audit
• E) differential competitive advantage

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Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Economic Order Quantity

A calculation used to determine the optimal order quantity that minimizes the total inventory costs, including holding and ordering costs.

Inventory Policy

The set of guidelines a company follows to determine how much inventory should be kept on hand to meet customer demand and manage supply chain efficiency.

Quantity Discounts

Pricing incentives granted to purchasers that buy in large volumes, typically reducing the cost per unit.