Which of the Following Statements Best Reflects a Marketing-Oriented Approach

question 107

Multiple Choice

Which of the following statements best reflects a marketing-oriented approach to physical distribution?

• A) "We should create a position of inventory manager and give that person authority to coordinate all physical distribution activities to minimize the firm's total inventory costs."
• B) "We should aim to keep our customers fully satisfied 100 percent of the time as this will increase our sales and give us a competitive advantage."
• C) "We should replace our warehouses with distribution centers to speed the flow of products and eliminate all storage."
• D) "We should choose the physical distribution alternative that will minimize the total cost of achieving the level of customer service our target market requires."
• E) All are equally "marketing-oriented."

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Definitions:

Value of the Marginal Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Profit-Maximizing

A strategy or process by which a business seeks to generate the highest possible profit from its operations.

Marginal Product

The additional output a firm produces as a result of hiring one more unit of input, such as labor or capital, holding all other factors constant.

Marginal Product

The additional output that results from using one more unit of a factor of production, keeping other factors constant.