On Which Dimensions Should the Performance of a Distribution Network

question 13

Multiple Choice

On which dimensions should the performance of a distribution network be evaluated at the highest level?

• A) Profitability of individual supply chain components
• B) Efficiency of overall supply chain network
• C) Customer needs that are met
• D) Cost of meeting customer needs
• E) C and D only

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Definitions:

Purchases

Items bought or acquired by a company for various purposes, primarily for resale in the course of business.

Cost Of Goods Available

The total cost of inventory available for sale during a period, calculated as beginning inventory plus purchases minus ending inventory.

Periodic Inventory System

An accounting method where inventory is physically counted at specific intervals to determine the level of inventory and cost of goods sold.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.