Improvement in Supply Chain Performance at the Result of Distributors

question 12

Multiple Choice

Improvement in supply chain performance at the result of distributors occurs for which of the following reasons?

• A) Reduction in transportation cost because of LTL shipments from manufacturers to distributor.
• B) Reduction in outbound transportation cost because the distributor combines products from many customers into a single outbound shipment.
• C) Reduction in inventory costs because distributor disaggregates safety inventory rather than aggregating at each retailer.
• D) A more stable order stream from distributor to manufacturer (compared to erratic orders from each retailer) allows manufacturers to lower cost by planning production more effectively.
• E) By carrying inventory closer to the point of sale, manufacturers are able to provide a better response time than distributors can.

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Definitions:

Coffee

A popular beverage made by brewing roasted and ground beans from the Coffea plant.

Total Utility

The total satisfaction or happiness derived by a consumer from consuming a certain quantity of goods or services.

Additional Coffee

An increment in the quantity of coffee, considered as an example of a product or commodity in economic studies.

Marginal Utility

The additional joy or advantage obtained from using one more unit of a good or service.