The Goal of _____ Is to Reduce Costs and Improve

question 58

Multiple Choice

The goal of _____ is to reduce costs and improve customer service,while at the same time reducing the overall investment in inventory in a supply chain.

• A) supply chain management
• B) investment management
• C) customer relationship management
• D) inventory management

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Definitions:

Variable Labor

Labor costs that vary directly with the level of production or business activity.

Average Cost

The total cost divided by the number of units produced, indicating the cost per unit of output.

Marginal Cost

The increase in total cost that arises from an extra unit of production, pivotal for decision-making in production processes.

Diminishing Returns

A principle stating that as more of a variable input is combined with a fixed input, the incremental gains in output will eventually decrease.