Random Motors Ships Cars to Hong Kong on a Constant

question 37

Multiple Choice

Random Motors ships cars to Hong Kong on a constant basis.However,it is not unusual for the slower ocean freight method that the company uses to experience problems with weather,equipment breakdowns,accidents,or even labor problems.Which of the following would be the best suggestion for Random Motors to pursue to ensure that no out-of-stock conditions in Hong Kong would cause dealers and consumers concern?

• A)be willing to air freight automobiles to Hong Kong
• B)be willing to buy a rival's inventory if necessary
• C)require that all dealers order six months in advance of need
• D)maintain a 30-day inventory in Singapore and another 30-day inventory at the company's distribution center in Hong Kong
• E)purchase no-fault insurance to cover losses

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Definitions:

Revealed Preferred

A concept in microeconomic theory suggesting that consumers' preferences can be determined by observing their choices and behaviors in various situations.

Commodity Bundle

A set of goods or services that are considered together, often used in the context of consumer choice and budget constraints.

Prices

The amount of money required to purchase a good, service, or asset.

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.