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

question 20

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 solution to problems with distribution capacity that HP experienced prior to the implementation of this arrangement.Which strategy is HP using to adjust capacity to match demand?

• A) Using part-time employees
• B) Cross-training employees
• C) Scheduling downtime during low periods
• D) Performing maintenance and renovations
• E) Outsourcing activities

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Definitions:

Debt-Equity Ratio

An assessment ratio depicting the usage rates of equity and debt in the financing of a company's assets.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, showing how efficient management is at using its assets to generate earnings.

Return on Equity

ROE (Return on Equity) indicates a company's profit efficiency by showing the amount of profit made from shareholders' investments.

Current Ratio

A financial metric that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.