Which of the Following Inventory Management Techniques Would Help a Business

question 77

Multiple Choice

Which of the following inventory management techniques would help a business owner make the best use of his company's cash?

• A)Avoid overbuying inventory.
• B)Schedule inventory deliveries at the latest possible date.
• C)Purchase goods from the fastest suppliers who can meet quality standards to keep inventory levels low.
• D)All of the above

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Definitions:

Market Supply

The total amount of a product that sellers are willing and able to sell across all markets at a given price level over a specific time period.

Market Demand

The cumulative volume of a good or service that all buyers in a market are prepared and able to buy at a range of prices.

Decrease in Demand

This occurs when the quantity of a good or service that consumers are willing and able to purchase at a specific price level declines, due to factors such as changes in preference or income.

Long-Run Equilibrium

A state in which supply and demand are balanced, and all economic variables are at their natural levels, not influenced by external short-term fluctuations.