During a Recent Year, Solectron, a California Electronics Contractor, Made

question 50

Multiple Choice

During a recent year, Solectron, a California electronics contractor, made half of its purchases under vendor-managed inventory programs. Solectron

• A) had its suppliers perform all materials handing activities.
• B) authorized its suppliers to eliminate as many wholesaling functions as possible from the supply chain.
• C) used a system in which its suppliers determined the product amount and assortment that should be replenished.
• D) authorized the use of distribution centers to provide quicker customer response times.
• E) balanced its total logistics cost by eliminating the convenience service factor.

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Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, crucial for economic decision-making and pricing strategies.

Diminishing Marginal Product

The principle that as more of a variable input is added to a fixed input, the additional output gained from each new unit of input will eventually decrease.

Marginal Costs

The extra expense associated with manufacturing an additional unit of a product or service.

Marginal Returns

Marginal Returns refer to the additional output or benefit received from increasing one unit of a particular input while keeping other inputs constant.