Customers Who Have a High Cost to Serve, but Do

question 62

Multiple Choice

Customers who have a high cost to serve, but do not want to pay very much are classified as

• A) passive.
• B) aggressive.
• C) carriage trade.
• D) bargain basement.
• E) potential.

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Definitions:

Reorder Point

The inventory level at which an order should be placed to replenish stock before it runs out, ensuring continuous operation.

Annual Demand

The total quantity of a product or service that consumers are willing and able to purchase over the course of a year.

Carrying Cost

The expenses incurred by holding inventory or assets, including storage, insurance, and opportunity costs.

Order Costs

Expenses associated with making and processing an order for goods or services.