In Line with the Organization's Objectives,the Sales Managers at MagnaCorp

question 79

Multiple Choice

In line with the organization's objectives,the sales managers at MagnaCorp must ensure that all products are sufficiently stocked so that customer orders are fulfilled and stockout situations do not arise.The operations managers,on the other hand,were instructed to lower inventory costs and hence,prefer to keep stock levels to a minimum.This situation is an example of ________.

• A)management by objectives
• B)secondary objectives
• C)intermediate-term plans
• D)planning subsystems
• E)suboptimization

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Definitions:

Bullwhip Effect

A phenomenon where inaccurate or distorted demand information in the supply chain causes drastic swings in inventory levels upstream.

Demand Variability

Fluctuations in customer demand over a period, impacting inventory management, production planning, and supply chain efficiency.