Hub and Spoke Systems Are Characterized By

question 48

Multiple Choice

Hub and spoke systems are characterized by:

• A)"spokes" that are represented by the sites that receive the goods.
• B)"hubs" that hold inventory until the appropriate season or upswing in demand.
• C)inventory locations that are close to producers, not customers.
• D)warehouses that are used as sorting facilities.

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Definitions:

Short-Term Debt

Liabilities or loan obligations that are due to be paid within a year.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for goods or services sold on credit.

Credit Sales

Credit sales are transactions where the buyer is allowed to pay for goods or services at a later date, extending credit.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.