A Logistics Manager Seeking to Minimize the Cost of All

question 30

Multiple Choice

A logistics manager seeking to minimize the cost of all logistic processes taken together,rather than reduce the cost of individual components of the logistics system,is using:

• A) A marginal cost approach.
• B) A total profit approach to logistics systems.
• C) The logistic costing approach.
• D) The total cost approach.
• E) A profit center approach to the logistics functions.

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Definitions:

Supply Curves

Visual representations indicating how the quantity supplied of a good changes in response to changes in its price, usually upward sloping.

Market Demand

The cumulative demand for a good or service from all buyers in the market, determined by their willingness and ability to purchase at various price points.

Marginal Revenue

The increased earnings obtained by selling an extra unit of a good or service.

Total Revenue

The total income generated from the sale of goods or services.