Adding a Complementary Product to What Is Currently Being Produced

question 91

Multiple Choice

Adding a complementary product to what is currently being produced is a demand management strategy used when:

• A) demand exceeds capacity.
• B) capacity exceeds demand for a product that has stable demand.
• C) the existing product has seasonal or cyclical demand.
• D) price increases have failed to bring about demand management.
• E) efficiency exceeds 100 percent.

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Definitions:

Return On Investment

A metric for assessing the effectiveness or profits from an investment, determined by dividing the net earnings by the investment's expense.

Performance Metrics

Performance metrics are quantifiable measures used to gauge an organization's performance in various areas, similar to the purpose of a performance measurement system but focused on specific measurable outcomes.

Nonfinancial Metrics

These metrics evaluate aspects of a business that aren't directly related to financial figures, such as customer satisfaction or employee turnover.

Financial Metrics

Quantitative measures used to assess the financial health, performance, and viability of a business or investment.