Lead Times and Delivery Times Can Create Problems Also

question 21

Multiple Choice

Lead times and delivery times can create problems also. Longer times can _______________________. The extended lead time also might push back the date at which a firm is able to introduce new products to the market.

• A) increase inventory and drive down carrying costs
• B) increase inventory needs and drive up carrying costs
• C) reduce inventory needs and drive up ordering costs
• D) increase inventory needs and drive up ordering costs
• E) expand inventory and drive up production costs

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Definitions:

Polysaccharide

Carbohydrate that consists of hundreds or thousands of monosaccharide monomers.

Molecule

The smallest particle of a chemical element or compound that can exist independently while retaining the characteristics of the substance.

Cellulose

A complex carbohydrate that constitutes the primary structural component of plant cell walls and is indigestible to humans.

Plant Cuticles

A protective, waxy coating on the surface of stems and leaves that prevents water loss.