A Value Chain (Is)

question 44

Multiple Choice

A value chain (is)

• A) a group of activities that improve the effectiveness of a good or service.
• B) describes how a product moves through a distribution channel.
• C) a group of activities that improve the efficiency of a good or service.
• D) describes total amount of money spent on making a product.
• E) describes the transactions that occur between the vendor and the consumer.

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Definitions:

Inbound Materials

Raw materials or goods that are being received by a facility from suppliers for the purpose of production or resale.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold or distributed to customers.

Seasonal Stocks

Inventories that are built up in anticipation of predictable changes in demand that occur at certain times of the year.

EOQ

Economic Order Quantity is a formula used by businesses to determine the ideal order quantity that minimizes inventory costs including holding, shortage, and order costs.