Production Flexibility Should Help a Supplier Support Its Business Customers

question 87

Multiple Choice

Production flexibility should help a supplier support its business customers with:

• A) just-in-time delivery
• B) EDI
• C) rapid response replenishment of inventories
• D) computerized reorder capabilities
• E) any of the above

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Definitions:

Selling Price

The amount a buyer pays to acquire a product or service from a seller.

Net Income

The amount of earnings remaining after all operational, interest, and tax expenses have been deducted from total revenue, reflecting the financial health of a company.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, reflecting the portion of sales that helps cover fixed costs and generate profit.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as lease payments and salaries of permanent staff.