You Are Responsible for Physical Distribution of Your Company's Service

question 66

Multiple Choice

You are responsible for physical distribution of your company's service.What should you focus on?

• A) minimizing wait times,managing service capacity,and providing delivery through distribution channels
• B) setting quality standards,choosing faster transportation modes,and using safety stock
• C) customer-oriented order processing and inventory control
• D) ensuring the intangibility of the service so that physical distribution becomes a less important factor

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Definitions:

Perfectly Elastic

Describes a situation in which the demand or supply for a product responds immediately and proportionately to changes in price, leading to an infinite elasticity.

Present Value

The present value of a future amount of money or series of cash inflows, calculated using a predetermined interest rate.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets over a specific time frame, often noted on an annual basis.

Present Value

Present Value is the current value of a future sum of money or stream of cash flows given a specified rate of return, often used in assessing the worth of investments.