Whenever a Set of Stock Prices Go Unnaturally High and Subsequently

question 55

Multiple Choice

Whenever a set of stock prices go unnaturally high and subsequently crash down, the market experiences what we call a(n) :

• A)financial meltdown.
• B)irrational behavior.
• C)stock market bubble.
• D)none of these.

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Definitions:

Kanban Size

Refers to the capacity or limit set for a kanban, a tool in lean manufacturing and just-in-time production, which signals when more materials or work is needed.

Setup Cost

A fixed cost incurred each time a production process or activity is initiated, which includes costs associated with preparing equipment and facilities for manufacturing.

Carrying Cost

The expenses associated with storing and maintaining inventory, including warehousing, insurance, and spoilage costs.

Safety Stock

Additional inventory kept to prevent stockouts, typically used as a buffer against demand variability or supply chain disruptions.