Top Managers at Keep It Clean Inc

question 131

Multiple Choice

Top managers at Keep It Clean Inc.,which produces and sells home-care cleaning products,are looking for ways to improve the supply chain.One idea that has been mentioned by several managers is a just-in-time logistics system.If the following facts were known,which one would strengthen the argument for the shift to a just-in-time logistics system?

• A) The company's storage and handling costs are significant.
• B) The company's suppliers have not adopted just-in-time systems.
• C) Higher inventory levels are evident in the summer than they are in the winter under the current system.
• D) Demand for the company's products varies depending on the promotional strategies of its retail partners.
• E) The company's leading brand has many strong competitors.

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Definitions:

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Sushi

A traditional Japanese dish consisting of vinegared rice, usually accompanied by various ingredients like seafood, vegetables, and occasionally tropical fruits.

Income Elasticity

A measure of how much the demand for a product changes in response to a change in consumers' income.

Quantity Demanded

The overall volume of a commodity or service that individuals are prepared and financially able to buy at a certain price.