Hewlett-Packard Uses FedEx to Handle All of Its Fulfillment Orders

question 30

Multiple Choice

Hewlett-Packard uses FedEx to handle all of its fulfillment orders from its retail web site. Once an order is placed at the HP web site, it is automatically transmitted to FedEx's Memphis headquarters. Orders are packaged at FedEx's warehouse and shipped by FedEx to the HP customer. This arrangement was set up as a long-term solution to problems with distribution capacity that HP experienced prior to the implementation of this arrangement. Which strategy is HP using to flex demand to meet capacity?

• A) Aligning its capacity with demand fluctuations
• B) Stretching its existing capacity
• C) Shifting demand to match its capacity
• D) Smoothing peaks and valleys of demand
• E) Outsourcing

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Definitions:

Negotiations

A discussion aimed at reaching an agreement between two or more parties with differing interests.

Threats

Declarations or behaviors indicating an intention to inflict pain, harm, or punishment as a means of coercion or control.

Distributive Negotiations

A negotiation strategy where parties view the available resources as fixed and limited, leading to a competitive scenario where each aims to secure the largest share.

Cooperative

Refers to a scenario or action in which individuals or organizations work together towards a common goal or benefit.