On Average,a Retailer Keeps 15 Days Worth of Average Sales

question 9

True/False

On average,a retailer keeps 15 days worth of average sales in inventory on hand.It takes the supplier 10 days to deliver merchandise;therefore,the retailer has up to 5 days to process and order (or risk being out-of-stock).

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Definitions:

Salary Smoothing

The practice of moderating the fluctuations in an employee's pay through methods that stabilize income, such as averaging earnings over time or providing benefits that reduce the impact of income variability.

Payroll Deductions

The amounts withheld from an employee's payroll for taxes, insurance premiums, benefits, and other similar expenses.

Myopia

Short-sightedness, either literally in terms of vision or metaphorically in planning or decision-making.

Behavioral Economics

A field of study that analyzes the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions, and the consequences for market prices, returns, and resource allocation.