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.

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Definitions:

Lateral Moraine

Sediment carried in and deposited along the sides of a glacier.

Glacier

A large, slow-moving mass of ice, formed from compacted layers of snow, that flows over land.

Terminal Moraine

A mound or ridge of debris deposited at the end of a glacier, marking its furthest advance.

Glacier

A large, slow-moving river of ice, formed from compacted layers of snow, that shapes the landscape through its movement and melting.