Volvo,working with FedEx,set Up a Warehouse in Memphis with a Complete

question 97

Multiple Choice

Volvo,working with FedEx,set up a warehouse in Memphis with a complete stock of truck parts.A dealer needing a part for an emergency phones a toll-free number,and the part is delivered by FedEx within 24 hours.This is an example of how manufacturers are using:

• A) outsourcing
• B) cross-docking
• C) disintermediation
• D) piggybacking
• E) an integrated demand channel

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Definitions:

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a proposed project through its net present value.

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculating the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Discount Rate

In the realm of discounted cash flow analysis, this is the interest rate used for estimating the present value of future financial inflows.

Anticipated Annual Incremental

Expected yearly increases in revenue or benefits as a result of a particular action or investment, not considering future inflation or changes in currency value.