Which Statement Regarding Efficient Supply Chains Is Most Accurate

question 65

Multiple Choice

Which statement regarding efficient supply chains is most accurate?

• A)Efficient supply chains often operate with relatively low inventory levels.
• B)Efficient supply chains use common platforms and common components across several products.
• C)Efficient supply chains rely on maintaining large geographically dispersed inventory warehouses.
• D)Efficient supply chains traditionally use expensive,but faster,modes of transportation.
• E)Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

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Definitions:

Total Sales

The aggregate revenue a company generates from selling goods or services within a specified period.

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Margin Of Safety

The difference between actual or expected sales and the break-even point, indicating the level of risk in failing to cover fixed costs.

Breakeven

The point at which total costs and total revenue are equal, resulting in no net loss or gain.