Which of the Following Statements About Inventory and Storage Is

question 1

Multiple Choice

Which of the following statements about inventory and storage is TRUE?

• A) A distribution center is used to avoid unnecessary storing costs.
• B) Only government agencies can store products in public warehouses.
• C) Decisions about inventory levels are usually not of concern to marketing managers-since inventory levels are best determined based on the amount of the product produced.
• D) Achieving customer service goals makes a large inventory almost inevitable.
• E) Minimizing storage costs will lead to lower total distribution costs.

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Definitions:

Magic Number

A concept in cognitive science referring to the short-term memory capacity of about seven items (plus or minus two).

Auditory Traces

Memory traces of auditory information that are believed to persist in the brain for a brief period after the auditory stimulus has ended.

Short-term Memory

The ability to retain a limited amount of data in a readily accessible, active condition for a brief duration.

Busy Signal

A repeating tone or signal on a phone line indicating that the line is currently engaged in another call and unavailable.