For Which Corporate Strategy(ies) Should Supply Chain Inventory Be Minimized

question 42

Multiple Choice

For which corporate strategy(ies) should supply chain inventory be minimized?

• A) low cost
• B) response
• C) differentiation
• D) low cost and response
• E) low cost and differentiation

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Definitions:

Elastic

Describes a situation where the demand or supply for a good or service significantly changes in response to a change in price.

Unit Elastic

A demand or supply situation where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Elasticity of Demand for Cookies

A measure of how much the quantity demanded of cookies changes in response to a change in price.

Elasticity of Demand

A metric that assesses the sensitivity of the demand for a good to shifts in its price level.