Rival Companies Pooling Their Distribution Resources to Reduce Cost Are

question 36

Multiple Choice

Rival companies pooling their distribution resources to reduce cost are engaging in

• A)collaborative logistics.
• B)distribution outsourcing.
• C)cross docking.
• D)None of these answer choices is correct.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income and the degree to which a company can increase operating income by increasing revenue.

Break-Even Point

The point at which total costs match total earnings from production or sales, leading to neither a profit nor a loss.

Maintenance Costs

The expenses incurred to keep an asset in working condition or restore it to proper operation.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by a linear function.