Customers Making Large Contributions to the Profitability of the Company

question 125

Multiple Choice

Customers making large contributions to the profitability of the company should ________.

• A) be treated the same as other customers because all customers are important
• B) receive a higher level of attention from the company than less profitable customers
• C) be charged higher prices for the same products than less profitable customers
• D) not be offered the volume-based price discounts offered to less profitable customers

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Definitions:

Fill Orders

The process of completing customer requests for goods by preparing and dispatching products.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as the value-added time divided by the total throughput time.

Fill Orders

The process of completing a customer's purchase request by preparing and dispatching the requested goods.

Throughput Time

The total time taken to produce and deliver a product, including all processing, inspection, setup, and wait times.