When the Unit Value of a Product Is High Relative

question 18

Multiple Choice

When the unit value of a product is high relative to its size and weight,what is the best distribution channel?

• A) Direct distribution
• B) Two levels of intermediaries
• C) Three levels of intermediaries
• D) Four levels of intermediaries
• E) Indeterminate number of intermediaries

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Definitions:

Manufacturing Cycle Efficiency

A metric that measures the efficiency of the manufacturing process by comparing value-added time to total throughput time.

Turnover

This is a measure of how quickly inventory is sold or how often employees are replaced within a business.

Investment Opportunity

A potential financial venture, project, or asset that could generate a return on investment.

Margin

The difference between selling price and cost of goods sold, often expressed as a percentage of sales, highlighting profitability.