An Important Objective Shared by Both Production and Logistics Functions

question 48

Multiple Choice

An important objective shared by both production and logistics functions of an international firm is to

• A) increase profits by lowering quality.
• B) increase foreign competition.
• C) lower costs by dispersing production activities.
• D) decrease inventory turnover.
• E) stock excess inventory on hand.

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Definitions:

Acceptable Price Range

The range of prices within which buyers and sellers are willing to transact, often determined by market conditions and personal valuation.

Commodity Grade

A classification standard that specifies the quality and condition of commodities to ensure they meet minimum standards for trading.

Basis

The difference between the spot price of an asset and the futures price of the same asset.

Long Hedger

An investor who purchases futures contracts or the underlying asset to protect against potential price increases.