Adam Smith

question 206

Multiple Choice

Adam Smith:

• A) believed that trade in local communities is good for the economy, but trading with people located in foreign countries is bad for the economy.
• B) did not discuss or have an opinion about international trade.
• C) argued that it is beneficial to buy a product if the seller can sell it to us cheaper than we can make it for ourselves, regardless of the product's country of origin.
• D) believed that trade in local communities is bad for the economy, but trading with people located in foreign countries is good for the economy.

Differentiate between inbound and outbound transportation costs and their impact on supply chain efficiency.

Comprehend the role and impact of technology in enhancing supply chain visibility and tracking.

Analyze the implications of supply chain design choices on logistics costs and customer service levels.

Recognize the trade-offs involved in selecting a particular distribution network design.

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Definitions:

Perpetual Inventory

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Retail Inventory Method

An accounting method used to estimate the ending inventory balance of a retail store by applying a cost-to-retail price ratio to the sales for the period.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.

Gross Profit Method

An inventory estimation technique that uses the historical gross profit margin to estimate the cost of goods sold and ending inventory.