Why Are Retailers Often Considered the Most Important Link in the Supply

question 68

Multiple Choice

Why are retailers often considered the most important link in the supply chain?

• A) They can engage in both horizontal and vertical integration
• B) They set pricing strategies based on cost of goods sold
• C) They connect customer with vendors who supply merchandise
• D) They receive discounts from suppliers
• E) They can best gauge customers' wants and needs

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Definitions:

Nondurable Good

A product that is consumed or has a lifespan significantly shorter than three years, such as food products, fuel, or cleaning supplies.

Durable Goods

Consumer products with a long life span, such as appliances, vehicles, and furniture, which are used over time rather than consumed quickly.

Nondurable Goods

Items that have a short lifespan and are consumed or used up quickly after purchase, such as food and paper products.

NAICS Guidelines

The North American Industry Classification System guidelines classify business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. economy.