The Best Order Fulfillment Processes Reduce Order Cycle Time as Much

question 58

Multiple Choice

The best order fulfillment processes reduce order cycle time as much as possible.The shorter lead times are beneficial in that they allow firms to carry ______.

• A) reduced inventory levels and minimize investment in newer,untested projects
• B) reduced inventory levels and free up cash that can be used on other projects
• C) increased inventory levels and borrow cash for newer,more promising projects
• D) increased inventory levels and generate greater profits by meeting sudden demands

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; it is calculated by dividing sales revenue by total assets.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, measuring how efficiently a company uses its assets to generate earnings.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Acid Test

A rigorous and conclusive test to prove the effectiveness or value of something.