-In Figure 4

question 119

Multiple Choice

-In Figure 4.2, the reason that point A is not through the origin but starts up on the vertical axis is that

• A)there are fixed outputs.
• B)there are fixed costs.
• C)there is no cost associated with producing no output.
• D)there is waste.

---

Definitions:

Safety Inventory

The extra inventory held to mitigate the risk of stockouts due to uncertainties in demand or supply.

Warehouse Inventory

Encompasses the goods and materials held in a storage space awaiting further distribution or sale, essential for managing supply chain efficiency.

Pipeline Inventory

Inventory that is currently in transit between locations or stages in a supply chain. It represents goods that are not yet available for sale or use.

Periodic Review System

A system of inventory control where the inventory levels are reviewed at fixed intervals to determine the reorder quantity.