Which of the Following Outcomes Occurs When Direct Shipping Is

question 160

Multiple Choice

Which of the following outcomes occurs when direct shipping is used instead of a distribution network?

• A) Outbound transportation cost is reduced.
• B) Inventory velocity is reduced.
• C) Order-fill rates are reduced.
• D) Inventory obsolescence is reduced.

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Definitions:

Lead Time

refers to the total time that elapses between the initiation and completion of a production process, from order to delivery.

Inventory Holding Cost

The expenses associated with storing unsold goods, including warehousing, insurance, taxes, spoilage, and opportunity costs.

Annual Demand

Annual demand quantifies the total quantity of a particular product or service that consumers are willing to buy over the course of a year.

Price Breaks

Discounts or lower pricing offered by suppliers to buyers as incentives for purchasing larger quantities.