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:

Census

A systematic enumeration of a population, often including the collection of demographic, social, and economic information.

Presidential Veto

The power of the President to refuse to sign a bill passed by Congress, thereby preventing it from becoming law unless overridden by a two-thirds vote in both houses.

Congress

The national legislative body of a country, particularly in the United States, it's made up of two houses: the Senate and the House of Representatives.

Two-Thirds Vote

A voting requirement used in various legislative bodies, where two-thirds of the voting members must agree on a proposal for it to pass.