In a Supply Chain Setting, Replenishment Time Refers to Lead

question 272

Multiple Choice

In a supply chain setting, replenishment time refers to lead time for an item, which means the time between the ordering of an item and when it is

• A) billed to the customer.
• B) acknowledged by the customer.
• C) billed and paid for by the customer.
• D) promised for delivery.
• E) received and ready for use or sale.

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Definitions:

Marginal Private Cost

The additional cost borne by a producer for producing one extra unit of a good or service.

Marginal Cost Curve

A graphical representation showing the increase in total cost that arises from producing one additional unit of a good or service.

Industry Supply

The total quantity of a good or service that all producers in a market are willing and able to sell at various prices.

External Benefits

Positive effects of a production or consumption activity on individuals or society who are not directly involved in the transaction.