A Catalog Merchant Wants to Build a New Distribution Center

question 131

Multiple Choice

A catalog merchant wants to build a new distribution center that will improve inventory management,storage of products,shipping,and returns.The company develops a close relationship with UPS,its main supplier of shipping services.UPS helps the catalog merchant design its new distribution center so that it coordinates well with the shipping processes at UPS.This arrangement reduces shipping costs and improves service to the catalog merchant's customers.This situation is an example of

• A)information sharing.
• B)negotiated contract buying.
• C)legal bonds.
• D)competition.
• E)relationship-specific adaptations.

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Definitions:

Derived Demand

The demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.

Wind Turbine Service Technicians

Professionals specialized in maintaining and repairing wind turbines to ensure their efficient operation.

Substitution Effect

Alterations in spending behaviors triggered by variations in the prices of goods relative to each other, prompting individuals to replace one item with an alternative.