Multiple Choice
Which of the following statements is TRUE?
A) Inventory is any physical asset held for future use or sale.
B) When using ABC analysis, C items require close control by operations managers as they account for a large dollar value but a relatively small percentage of total items.
C) Dependent demand is directly related to the demand of other stock-keeping units (SKUs) and can be calculated without needing to be forecasted.
D) Stockouts occur in a fixed-quantity system (FQS) whenever the lead-time demand exceeds the replenishment level (M) .
Correct Answer:
Verified
Correct Answer:
Verified
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