For Consumers,logistical Management Activities Including Inventory Control,warehousing,and Transportation,are

question 86

Multiple Choice

For consumers,logistical management activities including inventory control,warehousing,and transportation,are:

• A) not too important.
• B) associated with the delivery of services more than with the delivery of goods.
• C) part of product bundling.
• D) the basis for situational buying opportunities.
• E) rarely visible because they take place outside retail locations.

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Definitions:

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and opportunity cost of tied-up capital.

Shortage Costs

Costs incurred from not having enough inventory on hand, including lost sales and emergency shipping expenses.

Order Costs

Expenses related to placing and receiving orders for inventory, including costs associated with ordering, shipping, and handling.

Accounts Receivable Period

The common interval before a business secures payments from its customers for products or services rendered on credit.