If Demand Is Not Uniform and Constant, Then Stockout Risks

question 161

Multiple Choice

If demand is not uniform and constant, then stockout risks can be controlled by:

• A) increasing the EOQ.
• B) spreading annual demand over more frequent, but smaller, orders.
• C) raising the selling price to reduce demand.
• D) adding safety stock.
• E) reducing the reorder point.

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Definitions:

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream, regulating various bodily functions including metabolism, growth, and mood.

Spinal Cord

The cylindrical bundle of nerve fibers and associated tissue that is enclosed in the spine and connects nearly all parts of the body to the brain, forming the central nervous system.

Genetics

The scientific study of heredity and the variation of inherited characteristics.

Cerebral Cortex

The outer layer of the brain, involved in complex functions such as thought, perception, and memory.