Because of Uncertainty of Demand, a Firm May Choose to Hold

question 7

Multiple Choice

Because of uncertainty of demand, a firm may choose to hold an additional amount of inventory called:

• A)reorder stock.
• B)economic order quantity stock.
• C)safety stock.
• D)transit stock.

---

Definitions:

Formal Policies

Officially documented rules and guidelines within an organization designed to guide actions and decision-making processes.

Vivid Image

A highly detailed, clear, and striking mental representation or description that evokes a strong visual perception.

Memorable Slogan

A distinctive and catchy phrase used to convey an important message in a memorable way, often for advertising or branding.

Tangible Benefits

Refers to measurable and concrete advantages that result from an action or decision.