Reductions in Delivery Times in Both the Marketplace and the Supply

question 101

Multiple Choice

Reductions in delivery times in both the marketplace and the supply chain have earned firms such as Toyota and Xerox a reputation as "time-based competitors." For Toyota and Xerox, logistics

• A)increases their customers' inventory levels.
• B)increases the number of steps in their manufacturing processes.
• C)includes the role of Toyota and Xerox as channel captains.
• D)creates time and place utility for their customers.
• E)does not influence their suppliers' supply chains.

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Definitions:

Peak-Load Pricing

Peak-load pricing is a strategy that involves charging higher prices during periods of high demand and lower prices during periods of low demand to manage usage and balance supply and demand.

Consumer Willingness

The maximum amount a consumer is ready to pay for a good or service, reflecting their valuation of it.

Marginal Revenue

The added revenue obtained from trading an additional unit of a product or service.

Decreasing Cost Industry

An industry where an increase in production leads to a decrease in the average cost of producing each unit, often due to economies of scale.