Stockout Costs

question 33

Multiple Choice

Stockout costs

• A)the costs of not having a product available when demanded by a customer
• B)the costs of carrying inventory
• C)approach that maintains goods should be pulled through the system by present demand
• D)the number of units in the order quantity that minimizes the total cost
• E)the costs of placing and receiving an order

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Definitions:

Concentration Effect

The influence on the rate of a chemical reaction of the concentration of reactants; generally, an increase in concentration leads to an increase in reaction rate.

Collision Theory

A theory that proposes chemical reactions occur when reactant molecules collide with sufficient energy and an appropriate orientation.

High Energy

A term used to describe processes, particles, or quantum states having relatively large amounts of kinetic or potential energy.

Particle Motion

The description of the kinetic activity of particles in matter, affected by temperature and physical state, underlying the principles of diffusion and gas behavior.