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Efficient Auto Parts Is a Wholesale Distributor

question 62

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Efficient Auto Parts is a wholesale distributor.They purchase auto parts in bulk from manufacturers and sell in smaller quantities to regional retail outlets.They understand that carrying excess inventory can be expensive.On the other hand,running out of inventory can lead to lost business.Therefore,they have created a network that their suppliers can log into to check inventory levels for the parts they sell.When inventory levels reach an agreed upon level,the supplier automatically sends more to the distributor,with all the documentation being handled electronically.This system is most likely part of what kind of network?


Definitions:

Barriers to Entry

Economic, procedural, or regulatory obstacles that prevent or hinder new competitors from easily entering an industry or market segment.

Market Obstructions

Factors or barriers that hinder the free flow of goods, services, and information in a market, potentially limiting competition or consumer choice.

Switching Costs

The expenses or inconveniences that customers incur as a result of changing from one product, service, supplier, or system to another.

Import-Export Firewalls

Security systems that monitor and control incoming and outgoing network traffic based on predetermined security rules, especially between different trust levels or network zones.

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