A Supply Chain Driven by Actual Customer Orders or Purchases

question 65

Multiple Choice

A supply chain driven by actual customer orders or purchases follows a ________ model.

• A)pull-based
• B)build-to-stock
• C)push-based
• D)replenishment-driven
• E)optimized

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Definitions:

Productive Inefficiency

A situation where resources are not utilized in the best possible way, leading to wasted potential output or higher costs than necessary.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by the point where marginal revenue equals marginal cost.

Minimum Level

The Minimum Level refers to the least amount, extent, or degree that is acceptable or achievable in a specific context.

Marginal Cost

The financial requirement for producing a supplementary unit of a product.