Online Firms Like Amazon

question 140

Multiple Choice

Online firms like Amazon.com that take a B2C model approach

• A) emphasize a consumer focus.
• B) try to build long-term relationships with their customers.
• C) try to understand how customers behave online.
• D) are focused on individual buyers.
• E) incorporate all of the above.

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Definitions:

Weekly Demand

The total quantity of goods or services that consumers wish to purchase within a week, often used for inventory and production planning.

Holding Cost

The costs related to keeping inventory that hasn't been sold, covering storage fees, insurance, and losses due to items going bad.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Economic Order Quantity

A calculation used to determine the optimal order quantity that minimizes the total inventory costs, including holding and ordering costs.