The Distribution Element of a Supply Chain Management System Involves

question 15

Multiple Choice

The distribution element of a supply chain management system involves:

• A) purchase of components, supplier selection, and strategic alliances.
• B) sales promotion, events, PR, and publicity.
• C) transportation, CRM, and logistics parties.
• D) lean, inventory control, and product quality.
• E) coordination, measurement, and control across the entire supply chain.

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Definitions:

Barriers to Entry

Factors that prevent or impede the ability of a new competitor to enter and operate in an industry.

Monopoly

An economic condition where only one seller offers a distinctive product in the marketplace, with no similar alternatives available.

Natural Monopoly

A market condition where due to high fixed or start-up costs, efficient service is provided by a single firm instead of multiple competing firms, often seen in utilities sectors.

Fair-Return Price

For natural monopolies subject to rate (price) regulation, the price that would allow the regulated monopoly to earn a normal profit; a price equal to average total cost.