When an Organization Continues Serving the Same Clients by Offering

question 10

Multiple Choice

When an organization continues serving the same clients by offering the same product or service,maintaining market share,and sustaining the organization's current business operations,it is following a ________ strategy.

• A)renewal
• B)stability
• C)retrenchment
• D)turnaround

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Definitions:

Setup Cost

The expenses incurred to prepare equipment or processes for manufacturing an order, including cleaning and tooling costs.

Carrying Cost

The total cost of holding inventory, including storage, insurance, depreciation, and opportunity costs, synonymous with holding costs but with a rephrased definition for clarification.

Safety Stock

Inventory kept on hand to protect against stockouts caused by fluctuations in demand or supply chain disruptions.

Lead Time

Lead time is the amount of time that elapses from the start of a process until its completion, important in manufacturing and supply chain management.