One Negative Effect of Carrying Too Much Inventory Is Risk

question 200

True/False

One negative effect of carrying too much inventory is risk that customers will change their buying habits.

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Definitions:

Concurrent Control

The process of monitoring and adjusting ongoing activities and operations to ensure that goals are met efficiently and effectively.

Feedforward

A control mechanism designed to anticipate and prevent potential problems before they occur, rather than reacting to them afterward.

Corrective Action

Measures taken to identify and rectify problems, errors, or deviations in order to prevent their recurrence and ensure that objectives are achieved.

Control Systems

Mechanisms or regulations designed to manage or govern the behavior of systems or processes, ensuring they operate within desired parameters.