A Danger of an Excessive Investment in Inventory for the Small

question 44

Multiple Choice

A danger of an excessive investment in inventory for the small business is:

• A)excessive inventory taxes by local and state government.
• B)minimizing reordering costs.
• C)creating too quick a turnover of inventory.
• D)tying up an excessive amount of the firm's capital.

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Definitions:

M/M/S

A queueing model denoting a system with multi-servers where both arrivals and service times are Markovian (memoryless and exponentially distributed).

M/D/1

A queueing model notation that represents a system with a Poisson arrival process, deterministic service time, and a single server.