There Are Three Basic Questions to Be Considered When Designing

question 47

Multiple Choice

There are three basic questions to be considered when designing a transportation network between two stages of a supply chain.Which of the following is not a question to be considered?

• A) Should transportation be direct or through an intermediate site?
• B) Should intermediate site stock product or only serve as a cross-docking location?
• C) Should each delivery route supply a single destination or multiple destinations (milk run)?
• D) Should transportation costs be minimized?

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Definitions:

Dividend Income

Money that a company pays to its shareholders out of its profits.

AMT Income

Alternative Minimum Tax (AMT) income is a method of calculating taxable income according to parallel tax rules to ensure that certain taxpayers pay at least a minimum amount of tax.

Corporation

A legal entity recognized by law as separate from its owners, capable of holding assets, incurring liabilities, and conducting business.

FMV

Fair Market Value (FMV) refers to the price at which an asset would sell in the marketplace under conditions where both buyer and seller have reasonable knowledge of the asset and are willing to trade without external pressures.