Oakley Millwork Is a Supplier of Products Used in the Construction

question 3

Multiple Choice

Oakley Millwork is a supplier of products used in the construction industry.It has a published policy that if a customer places an order from its catalog and the product is not available for immediate delivery,the customer gets the item free.Oakley Millwork's policy is an example of a(n) :

• A) Explicit service promise
• B) Word-of-mouth communication
• C) Situational factor
• D) Implicit service promise
• E) Service predicator

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Definitions:

Setup Cost

The expenses incurred in preparing equipment or processes for manufacturing an order or batch of products.

Annual Demand

The total quantity of a product or service that consumers are willing and able to purchase over a year.

Safety Stock

Additional quantity of an item held in inventory to reduce the risk of stockouts caused by variability in supply or demand.

Stockouts

Occurrences when demand exceeds supply, resulting in an inability to fulfill customer orders or requirements immediately.