A Supply Chain

question 21

Multiple Choice

A supply chain

• A)is part of a broader network of relationships called a channel of distribution.
• B)is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain.
• C)requires skill in coordinating activities among different firms,which has prompted many firms to seek help from outside experts.
• D)focuses on procuring materials needed for production,so its main weakness is that it ignores customer needs.
• E)concerns only direct relationships between producers,while a channel of distribution may involve intermediaries.

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Definitions:

Miller-Orr Model

The Miller-Orr Model is a financial model used to manage cash flow and determine the optimal balance between holding cash versus short-term investments.

Disbursements

Payments made by a business, often related to operational expenses or loan repayments.

Optimal Average Cash Balance

The ideal level of cash a company seeks to maintain to minimize the costs associated with holding too much or too little cash.

Weekly Interest Rate

Interest calculated and applied on a weekly basis, often referred to in terms of loans or savings.