Asked by
Danny Galvez
on Oct 18, 2024
Verified
Which of these options would NOT increase profitability?
A) Increase the salvage value of each unit.
B) Decrease the margin lost from a stockout.
C) Decrease the uncertainty of demand.
D) Decrease the number of orders per season.
Salvage Value
The estimated resale value of an asset at the end of its useful life, often considered for depreciation calculations.
Stockout
A situation where items are not in stock and unavailable for sale or use, leading to potential loss of sales.
Uncertainty of Demand
The unpredictable nature of consumer demand, making it challenging to accurately forecast sales or production needs.
- Determine anticipated earnings by analyzing the provided distribution of demand and expense figures.
- Ascertain the costs incurred from overstocking and understocking within inventory management practices.
- Apply supply chain concepts to real-world scenarios for decision making.
Verified Answer
CM
Learning Objectives
- Determine anticipated earnings by analyzing the provided distribution of demand and expense figures.
- Ascertain the costs incurred from overstocking and understocking within inventory management practices.
- Apply supply chain concepts to real-world scenarios for decision making.