Giving Quantity Discounts Based on Annual Volume Instead of Single

question 6

Multiple Choice

Giving quantity discounts based on annual volume instead of single order size helps to control which supply-chain issue?

• A) control risk
• B) environmental risk
• C) the bullwhip effect
• D) unethical supplier behaviour
• E) vendor-managed inventory

---

Definitions:

Normal Distribution

A probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Degrees of Freedom

The number of independent values or quantities that can vary in the analysis of statistical data, crucial for assessing the reliability of various statistics.

Unbiased Estimator

An unbiased estimator is a statistical term for an estimate that is expected to be equal to the true parameter of the population.

Population Parameter

A numerical value that summarizes or describes an aspect of a population, such as its mean or standard deviation.