Order Cycle Time (OCT) Is Another Very Important Logistics Service

question 25

True/False

Order cycle time (OCT) is another very important logistics service metric. OCT influences product availability, customer inventories, and seller's cash flow and profit.

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Definitions:

Par Value

The face value of a bond or stock, as stated by the issuing company, which may differ from the market value.

Annual Coupon

The yearly interest amount paid to bondholders, typically expressed as a percentage of the bond's face value.

Default Risk Premium

The additional yield a lender demands to compensate for the risk that the borrower may default on the loan.

Liquidity Premium

Additional yield that investors demand for holding a security that is not easily traded or sold without a significant price reduction.