A Push System _____

question 4

Multiple Choice

A push system _____.

• A) works best when there are a large number of distribution centers
• B) is more appropriate for make-to-order items
• C) can reduce transportation costs by using full-truckload shipments
• D) works best with variable sales patterns

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Definitions:

Bulk Packaging

The practice of packaging products in large containers or quantities for efficient transport and storage, typically used for wholesale.

Capacity

Maximum output of the operation of an organization.

Residual Income

A measure of net income that remains after subtracting a charge for the capital cost involved in generating that income.

Weighted Average Cost of Capital

A financial metric that calculates a firm's cost of capital, weighted by the proportion of equity and debt financing.