Which Inventory Function Provides a Cushion Against Unexpected Supply Shortage

question 86

Multiple Choice

Which inventory function provides a cushion against unexpected supply shortage?

• A) anticipation inventory
• B) fluctuation inventory
• C) lot-size inventory
• D) transportation inventory
• E) speculative inventory

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Definitions:

Fresh Water

Fresh water is water with a low salt concentration, found in rivers, lakes, streams, and underground aquifers, essential for drinking, agriculture, and industry.

Scarce Resource

A resource that is limited in availability and can be used up or depleted, making it valuable and subject to economic study for optimal use.

Unlimited Wants

The economic concept that humans have endless desires for goods and services.

Good

A tangible product used to satisfy human wants.