A High Stockturn Rate

question 264

Multiple Choice

A high stockturn rate:

• A) is only possible with a low markup percent.
• B) is likely to result in low profits.
• C) reduces the inventory investment and can improve profits.
• D) increases the space needed for inventory.
• E) None of these alternatives is correct.

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Definitions:

Requirements Known

Pertains to a condition where the specifications, needs, or conditions for a project or product are clearly identified and documented.

Capacity Planning

The method of calculating the manufacturing capability required by a company to adapt to fluctuating needs for its goods.

Aggregate Planning

A process in operations management aimed at determining the optimal production levels, inventory, and workforce to meet expected demand over a medium-term horizon.

Master Schedule

A detailed plan that outlines the production activities, timelines, and resources needed to manufacture a product.