Which of the Following Is NOT TRUE Regarding Inventory Management

question 112

Multiple Choice

Which of the following is NOT TRUE regarding inventory management?

• A) The two fundamental inventory decisions are: where to order and what to order.
• B) Inventory management applies to goods and to services.
• C) Different types of inventory characteristics require different approaches for control.
• D) Stock-keeping units (SKUs) are often aggregated or partitioned into groups with similar characteristics or dollar value.

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Definitions:

Utility Function

An expression that captures how a consumer ranks different bundles of goods based on the level of utility or satisfaction each bundle provides.

Labor Income

Earnings from work or employment, including wages, salaries, bonuses, and any other form of payment for labor services.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Net Demands

The total demand for a product or service minus the supply provided, reflecting the actual market demand not met by current production.