The MINIMAX Objective

question 34

Multiple Choice

The MINIMAX objective

• A) yields the smallest possible deviations.
• B) minimizes the maximum deviation from any goal.
• C) chooses the deviation which has the largest value.
• D) maximizes the minimum value of goal attainment.

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Definitions:

Safety Inventory

The extra inventory held to mitigate the risk of stockouts due to uncertainties in demand or supply.

Warehouse Inventory

Encompasses the goods and materials held in a storage space awaiting further distribution or sale, essential for managing supply chain efficiency.

Pipeline Inventory

Inventory that is currently in transit between locations or stages in a supply chain. It represents goods that are not yet available for sale or use.

Periodic Review System

A system of inventory control where the inventory levels are reviewed at fixed intervals to determine the reorder quantity.