________ Is the Term Used to Describe the Use of Outside

question 192

Multiple Choice

________ is the term used to describe the use of outside firms to help move their goods through the supply chain.

• A) Third-party logistics
• B) Multilevel distribution
• C) External logistics
• D) Mediated distribution

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Definitions:

ABC Analysis

A method for classifying inventory or items into three categories (A, B, and C) based on their importance, usually determined by value or usage rate.

Inventory Savings

Reductions in costs achieved through efficient management of stock, including ordering, storing, and using goods or materials.

Economic Order Quantity

A calculation that determines the optimal order quantity that minimizes total inventory costs, including holding, ordering, and shortage costs.

Safety Stock

An extra quantity of inventory kept on hand to prevent stockouts caused by unpredictable demand or supply delays.