Logistics, in Its Simplest Form

question 25

Multiple Choice

Logistics, in its simplest form,

• A) is a military term, as it was developed originally to supply the battlefield.
• B) combines inbound logistics with the outbound logistics of physical distribution.
• C) is another term for transportation management.
• D) does not involve customer service or other related functions.

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Definitions:

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of economic activity.

Demand-side Market Failure

A situation where the quantity of a product demanded by consumers does not equate to the quantity supplied by producers due to externalities or imperfect information, leading to an inefficient allocation of resources.

Efficient Amount

The quantity of a good or service that maximizes social welfare, taking into account all costs and benefits.

Free-rider Problem

A situation in which individuals or entities benefit from resources, goods, or services without paying for them, leading to underprovision of those goods.