When Customers Become Dependent on Mutually Beneficial Inter-Enterprise Information Systems

question 19

Multiple Choice

When customers become dependent on mutually beneficial inter-enterprise information systems, they become reluctant to switch to a company's competitors because they would incur all following costs except:

• A) Time
• B) Money
• C) Innovation
• D) Effort

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Definitions:

ABC Analysis

A method for classifying inventory or items into three categories (A, B, and C) based on their importance, usually determined by value or usage rate.

Inventory Savings

Reductions in costs achieved through efficient management of stock, including ordering, storing, and using goods or materials.

Economic Order Quantity

A calculation that determines the optimal order quantity that minimizes total inventory costs, including holding, ordering, and shortage costs.

Safety Stock

An extra quantity of inventory kept on hand to prevent stockouts caused by unpredictable demand or supply delays.