In a Just-In-Time Logistics System, ________

question 76

Multiple Choice

In a just-in-time logistics system, ________.

• A) retailers carry small inventories of merchandise to last for only a few days
• B) retailers store products for long periods to avoid an interruption in supply
• C) producers supply products to resellers before customers place their orders
• D) producers that are geographically far from their retailers use an express-delivery system
• E) retailers incur high inventory-carrying and inventory-handling costs

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Definitions:

Finished Goods

These are completed products that are ready for sale but have not yet been sold to customers.

Cost of Goods Sold

Costs directly incurred in the manufacture of goods a company sells.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxes, and interest expenses.