One Problem with a ____ Logistics Structure Is That Because

question 30

Multiple Choice

One problem with a ____ logistics structure is that because logistics activities are scattered throughout a firm, they likely remain subservient to the objectives of the department in which they are housed.

• A) fragmented
• B) matrix
• C) decentralized
• D) hierarchicial

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Definitions:

Artificially Scarce Goods

Products or services whose availability is limited by the seller to increase demand or price, rather than by natural scarcity.

Natural Monopolists

Entities that dominate a market due to inherent advantages, such as economies of scale, which prevent efficient competition.

Average Total Costs

The total of all costs associated with production divided by the number of units produced, giving the cost per unit.

Marginal Cost

The additional expense required to produce or supply one extra unit of a product.