Amazon's Use of the Internet as a Platform to Sell

question 56

Multiple Choice

Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates a use of information services for

• A)low-cost leadership.
• B)marketing effectiveness.
• C)focusing on market niche.
• D)strengthening supplier intimacy.
• E)developing synergies.

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Definitions:

Carrying Costs

The complete expense associated with keeping inventory, encompassing storage fees, insurance, and the cost of missed opportunities.

Safety Stocks

Extra inventory kept to prevent stockouts and ensure adequate supply in the face of demand or supply variability.

Restocking Costs

Expenses associated with replenishing inventory, including purchasing, shipping, and handling costs.

Collection Policy

The set of guidelines a company uses to monitor and manage the collection of accounts receivable or owed debts.