A Firm That Employs a Response Strategy Should Minimize Inventory

question 136

True/False

A firm that employs a response strategy should minimize inventory throughout the supply chain.

---

Definitions:

Cash Conversion Cycle

A metric that shows the time span between a company's outlay of cash and its collection of receivables; a measure of liquidity.

Trade Credit

Credit extended by a seller to a buyer allowing the latter to purchase goods or services immediately and pay for them at a later date.

Discounts Offered

Discounts Offered are reductions from the regular price of goods or services, often used as an incentive for customers to purchase more or pay earlier.

Cash Budgets

Financial plans that estimate cash inflows and outflows over a specific period, helping businesses manage their liquidity and financial stability.