The Management at Sad Clown Pajamas,an Internet-Based Wholesaler,is Considering a New

question 70

Multiple Choice

The management at Sad Clown Pajamas,an Internet-based wholesaler,is considering a new inventory control system.The current system is inadequate because it results in stockouts that interrupt production and excess stocks of some materials that result in markdowns and high carrying costs.The new system,which will focus on forecasting demand for Sad Clown's products,will employ

• A) a just-in-time inventory system.
• B) the economic order quantity.
• C) a reorder point.
• D) materials requirements planning.

---

Definitions:

Fault

A defect, mistake, or error in a system or character that often leads to malfunction or adverse outcomes.

Legal Theory Of Negligence

A legal doctrine that makes a person or entity liable for harm caused by failing to act as a reasonably prudent person would under the same circumstances.

Reasonable Person

A hypothetical individual in law whose behavior serves as a standard of care to determine negligence by comparing actions to those expected of a typical person.

Ordinary Prudence

A standard of care that refers to the caution, attention, or skill a reasonable person would use under similar circumstances.