The Physical Distribution (PD)concept Is Probably Being Used in a Firm

question 99

Multiple Choice

The physical distribution (PD) concept is probably being used in a firm if

• A)inventories are set based on just-in-time delivery policies.
• B)the total cost of distribution is as low as possible.
• C)storing costs have been minimized.
• D)transporting,storing,and product-handling are seen as interrelated parts of one PD system.
• E)transporting costs have been minimized.

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Definitions:

Premium

An amount paid in excess of the regular price, often associated with insurance costs or the additional cost to buy an asset.

Euro

The official currency of 19 of the 27 European Union countries, which constitutes the Eurozone.

Spot Market

A market in which financial instruments or commodities are traded for immediate delivery and payment, contrasting with futures markets where delivery is set at a future date.

Spot Rate

The current price or rate of a financial instrument or commodity available for immediate settlement or purchase on the open market.