The Three Steps Used in Choosing a Supply Chain Are

question 193

Multiple Choice

The three steps used in choosing a supply chain are (1) understand the customer, (2) understand the supply chain, and (3)

• A) understand the environment.
• B) harmonize the supply chain with the marketing strategy.
• C) understand the marketing mix.
• D) understand the logistics.
• E) understand the company's goals.

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Definitions:

Service Level

A measure of the quality of service provided, often defined in terms of customer satisfaction, response time, and availability.

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out, based on lead time and demand rates.

Order Lead Time

The time duration from placing an order to receiving the order, crucial in inventory management and customer satisfaction.

Stockout Risks

The potential for inventory shortages that can result in lost sales, customer dissatisfaction, and negative impacts on a business's reputation and income.