Caterpillar Collects and Analyses Large Volumes of Data About How

question 104

Multiple Choice

Caterpillar collects and analyses large volumes of data about how customers use their tractors.This permits them to ________ the cost of new product development efforts and to better ________ their products.

• A) increase; differentiate
• B) reduce; differentiate
• C) position; understand
• D) identify; disperse

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Definitions:

Holding Cost

The expense of storing unsold goods, including warehousing, insurance, and depreciation costs.

Order Cost

Expenses related to making and processing an order for goods or services, encompassing production, procurement, and administrative costs.

Drought Conditions

An extended period of deficient rainfall relative to the statistical multi-year average for a region, resulting in water scarcity that can affect agriculture, water supply, and ecosystems.

Average Inventory

The mean stock level held by a company over a certain period, calculated to understand inventory trends and management effectiveness.