Improvement in Supply Chain Performance as a Result of Distributors

question 25

Multiple Choice

Improvement in supply chain performance as a result of distributors occurs for which of the following reasons?

• A)Reduction in transportation cost because of LTL shipments from manufacturers to distributor.
• B)Reduction in outbound transportation cost because the distributor combines products from many customers into a single outbound shipment.
• C)Reduction in inventory costs because distributor disaggregates safety inventory rather than aggregating at each retailer.
• D)A more stable order stream from distributor to manufacturer (compared to erratic orders from each retailer)allows manufacturers to lower cost by planning production more effectively.

Comprehend the techniques for managing and financing working capital, including the use of marketable securities.

Recognize the cost implications of offering trade credit discounts and the use of stretching accounts payable.

Identify the purposes and differences between short-term and long-term cash budgets.

Understand the principles guiding the use of trade credit and the evaluation of credit cost.

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Definitions:

Rational Consideration

The process of systematically evaluating available options based on logic, facts, and objective criteria before making a decision.

Management Approach

Strategies, philosophies, or methods adopted by leadership in governing, directing, and administering an organization to achieve its goals.

ISO Certification

Conformance with a rigorous set of international quality standards.

Quality Benchmarks

Standards or points of reference against which products, services, and processes are measured to gauge their level of excellence.