Walmart Has Its Own Trucks That Ship Merchandise to Its

question 90

Multiple Choice

Walmart has its own trucks that ship merchandise to its warehouses from the supplier for backstock purposes. Walmart is carrying out which of the following functions?

• A) Contracting with suppliers
• B) Standardizing and grading its facilities
• C) Buying and selling
• D) Risking obsolescence of its products
• E) Transporting and storing

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Definitions:

Shortage Costs

Expenses incurred from not having enough inventory on hand, including lost sales, backorder processing, and dissatisfied customers.

Carrying Costs

Expenses associated with holding or storing inventory, including insurance, storage, depreciation, and opportunity costs.

Seasonal Increases

Periodic rises in business activity or demand that occur at the same time each year due to changes in season.

Accounts Receivable Period

The accounts receivable period is the average number of days it takes a company to collect payments owed by its customers.