A Carrier Takes Three Weeks to Deliver a Product Which

question 112

Multiple Choice

A carrier takes three weeks to deliver a product which has average sales of 1,000 units per week. The unit cost is $20 each and the carrying cost is 15%. What is the savings in the transportation inventory cost if management decides to change the mode of transportation to decrease time to one week?

• A) $2,000
• B) $3,000
• C) $6,000
• D) $9,000

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Definitions:

E-Mail Server

A server whose function is to process and deliver incoming and outgoing e-mail.

Database Server

A specialized server that manages databases, responds to requests from client machines, and performs database operations like data storage, retrieval, and manipulation.

Application Server

A server dedicated to running specific applications, offering both data and business logic.

Data Integrity

The accuracy and consistency of data over its lifecycle, which is critical to ensure the reliability and trustworthiness of the data in decision-making processes.