A car dealer that maintains a large number of automobiles on their lot so that they avoid losing a sale to another dealer who has the make and model a given customer wants is engaged in ________.
A)production smoothing
B)work in process
C)stock-out avoidance
D)first degree price discrimination

Question

Quizplus · Accepted Answer

The car dealer is engaged in stock-out avoidance by maintaining a large number of automobiles on their lot, ensuring that they have the make and model a given customer wants and avoiding the loss of a sale to another dealer. Production smoothing refers to techniques used to reduce variability in the production process, work in process is inventory that is in progress but not yet completed, and first degree price discrimination involves charging each customer the maximum price they are willing to pay for a product or service.

A Car Dealer That Maintains a Large Number of Automobiles