Which of the Following Is Not Implied When Average Inventory

question 47

Multiple Choice

Which of the following is not implied when average inventory is Q/2, where Q is the order quantity?

• A) An entire order quantity arrives at one time.
• B) The previous order quantity is entirely depleted when the next order arrives.
• C) An order quantity is depleted at a uniform rate over time.
• D) Backorders are permitted.

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Definitions:

Kondratieff

A theory proposing that Western capitalist economies have long-term (50 to 60 years) cycles of boom and bust, named after Russian economist Nikolai Kondratiev.

Macro Economy

Refers to the study of the overall aspects and workings of an economy, including inflation, unemployment, and economic growth.

Intervals

In statistics and mathematics, a range between two numbers where data points can lie, often used in the context of confidence intervals in research.

Bullish Signal

An indicator suggesting that the price of a security is likely to rise.