Which of the Following Statements About Just-In-Time Delivery Is FALSE

question 88

Multiple Choice

Which of the following statements about just-in-time delivery is FALSE?

• A)Just-in-time shifts greater responsibility for physical distribution backward in the channel.
• B)Just-in-time reduces storing and handling costs for everyone in the channel.
• C)Just-in-time increases the coordination needed among channel members.
• D)Just-in-time reduces storing and handling costs for business customers.

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Definitions:

Shared Service Units

Organizational entities created within a firm to provide specialized support functions centrally to various business units or departments, enhancing efficiency and reducing costs.

Profit Centres

Divisions or departments within an organization that are responsible for generating their own revenue and managing their own expenses.

Zero Profit

A situation where a company's revenue exactly matches its operational costs, resulting in no net profit or loss.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and contribute to profits.