Which of the Following Is a Disadvantage of Push Systems

question 1

Multiple Choice

Which of the following is a disadvantage of push systems

• A) They are not effective when sales patterns are consistent.
• B) They are not effective when there are few distribution centers and products.
• C) They increase transportation costs in a supply chain.
• D) They result in higher costs when forecasting sales is difficult.

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Definitions:

Monopolistic Competition

An economic setup in which numerous firms offer products that are alike but not the same, enabling competition to revolve around quality, pricing, and promotional strategies.

Average Total Cost

The average cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and free entry and exit, leading to price-taking behavior.

Long-Run Equilibrium

A state in which all firms in a market are earning normal profits, and there is no incentive for firms to enter or exit the market.