Answer the Following Question(s)using the Information Below

question 64

Multiple Choice

Answer the following question(s) using the information below:
The following information has been gathered for Product A:

-What are the major relevant costs in maintaining safety stock?

• A)carrying costs and purchasing costs
• B)ordering costs and purchasing costs
• C)ordering costs and stockout costs
• D)stockout costs and carrying costs
• E)stockout costs and purchasing costs

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Definitions:

Customer Cost Analysis

An approach to evaluate all costs related to acquiring, servicing, and retaining a customer.

Capacity Analysis

The process of determining the maximum level of output that a company can sustain with its existing resources.

Order Fulfillment Department

A functional area within a business that manages the process of receiving, processing, and delivering orders to customers.

Tech Support Department

A division within a company that assists customers with technical problems or issues related to their products or services.