Which of the Following Is Not a Common Inventory Problem

question 5

Multiple Choice

Which of the following is not a common inventory problem for mercantile organizations?

• A) Maintaining an economic level of inventory on hand
• B) Avoiding obsolete inventory
• C) Managing a selection of products to achieve satisfactory profitability
• D) Determining the lead time for products

---

Definitions:

CPI

It's an index that measures the average prices of a basket of consumer services and products, like food, transportation, and healthcare, through their weighted average, known as the Consumer Price Index.

Base Year

A specific year against which economic or financial data is compared to measure changes in prices, outputs, or other economic indicators over time.

Consumer Price Index

An indicator assessing the mean fluctuation over time in the expenses borne by city dwellers for a designated assortment of consumer products and services.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, often expressed as a percentage.