In a Supply Chain Setting, Replenishment Time Refers to Lead

question 230

Multiple Choice

In a supply chain setting, replenishment time refers to lead time for an item, which means the time between the ordering of an item and when it is

• A)billed to the customer.
• B)acknowledged by the customer.
• C)billed and paid for by the customer.
• D)promised for delivery.
• E)received and ready for use or sale

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Definitions:

Cash Collections

The process of gathering all receivables or cash owed by customers to a business within a specified period.

Average Collection Period

The usual number of days necessary for a firm to get payments from its buyers.

Operating Cycle

The duration of time it takes for a company to buy inventory, sell the goods, and collect the receivables from the sale.