Reduction of In-Transit Inventory Can Be Encouraged Through Use of

question 26

Multiple Choice

Reduction of in-transit inventory can be encouraged through use of

• A) supplier location near plants
• B) low setup costs
• C) low carrying costs
• D) use of trains, not trucks
• E) low-cost, global suppliers

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Definitions:

Economies Of Scale

The reduction in cost per unit of goods or services produced as the scale of output increases.

World Price

The international market price of a commodity, determined by global supply and demand conditions.

Per-Unit Tariff

A specific tax levied on each unit of a good imported into a country, as opposed to a percentage of the value.

Imported Good

A product or service brought into one country from another country in a legitimate fashion, typically for use in trade.