A(n)_____ Is the Amount of Inventory That Results in the Minimum

question 99

Multiple Choice

A(n) _____ is the amount of inventory that results in the minimum cost,considering the cost of lost sales resulting from running out of stock,the number of units sold per day,and the number of days required to receive inventory.

• A) optimum stocking level
• B) periodic inventory
• C) economic order quantity
• D) micro inventory

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Definitions:

Productivity

The assessment of how effectively a person, machine, factory, or system can transform inputs into valuable outputs.

Labor Input

Refers to the total hours worked or the number of employees engaged in production in the economy.

Goods and Services

The tangible products (goods) and intangible activities (services) that satisfy human wants and needs and are offered in the market.

Market Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.