One of the Benefits of EDI Is That It Can

question 51

Multiple Choice

One of the benefits of EDI is that it can reduce lead time,which is

• A) the time between the decision to place an order and the receipt of the merchandise.
• B) the time from when an RFP is announced to the time a consumer purchases the finished product.
• C) the time from when funds are committed for purchase of raw materials to the time when the payment for the finished goods is actually received.
• D) the time between when finished goods leave the manufacturer and when they arrive,floor-ready,at the retailer.
• E) the time between when an item is sold to a customer and when a replacement is made available for purchase by another customer.

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Definitions:

Explicit Costs

Direct, out-of-pocket expenses incurred in the operation of a business or the execution of a transaction.

Production

The process or method of creating goods and services through the combination of labor, materials, and technology.

Fixed Inputs

Resources in production that remain constant in quantity regardless of the level of output or activity.

Variable Inputs

Resources used in production that vary with the level of output, such as raw materials.