Hewlett-Packard Uses FedEx to Handle All of Its Fulfillment Orders

question 20

Multiple Choice

Hewlett-Packard uses FedEx to handle all of its fulfillment orders from its retail web site.Once an order is placed at the HP web site,it is automatically transmitted to FedEx's Memphis headquarters.Orders are packaged at FedEx's warehouse and shipped by FedEx to the HP customer.This arrangement was set up as a solution to problems with distribution capacity that HP experienced prior to the implementation of this arrangement.Which strategy is HP using to adjust capacity to match demand?

• A) Using part-time employees
• B) Cross-training employees
• C) Scheduling downtime during low periods
• D) Performing maintenance and renovations
• E) Outsourcing activities

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.

8% Bond

A bond that pays an annual interest rate of 8% of its face value to the bondholders.

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, taking into account both current interest payments and the gain or loss upon redemption.

7% Bond

A bond that pays 7% interest annually on its face value.