Inventory Management Systems That Are Designed to Reduce the Retailer's

question 6

Multiple Choice

Inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise,which then lower a retailer's inventory investment,improve customer service levels,and reduce logistics expense are referred to as

• A) order replenishment systems.
• B) quick response systems.
• C) customer logistics factors.
• D) minimum-inventory systems.
• E) web-based response systems.

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Definitions:

Incremental Sales

Additional revenues generated from a new marketing campaign, sales strategy, or any activity beyond normal operations.

Operating Expenses

Expenses related to the day-to-day operations of a business that are not included in the cost of goods sold, such as rent, salaries, and utilities.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects or assets, evaluating potential returns and risks.

Straight-Line Depreciation

A method of calculating depreciation by evenly spreading the cost of an asset minus its salvage value over its useful life.