As a Result of the Terrorist Attacks of September 11

question 12

Multiple Choice

As a result of the terrorist attacks of September 11, 2001, many firms have employed a wide range of tactics to ensure continued flow of inventory in the face of government steps to curb terrorism. Which of the following is an inventory sourcing strategy response (as opposed to an inventory management response, or a transportation response) ?

• A)Carrying more inventory on-hand.
• B)Minimize cross-border exposure from suppliers.
• C)Shifting to air cargo shipments instead of co-habitation of products and passengers on commercial air flights.
• D)Increasing the on-hand supply of critical parts.

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Definitions:

Supply

The total amount of a good or service that is available for purchase at various prices in a given market.

Economy

A system of production, distribution, and consumption of goods and services in a particular geographic region.

Demand

Demand is an economic principle referring to a consumer's desire and willingness to pay a price for a specific good or service.

Supply

The total amount of a specific good or service that is available to consumers, often influenced by the price as well as other factors.