Which of the Following Statements About Cross-Docking Is NOT Correct

question 32

Multiple Choice

Which of the following statements about cross-docking is NOT correct?

• A)Cross-docking is packing products on incoming shipments so they can be easily sorted for outgoing shipments based on their final destination.
• B)Cross-docking reduces inventory and storage space requirements,but handling costs and lead times tend to increase.
• C)Items are moved from incoming vehicles to outgoing vehicles without being stored in warehouse inventory.
• D)Inbound and outbound shipments must be tightly coordinated for cross-docking to work.

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Definitions:

Social Cost

The total cost to society, including both private costs borne by producers and external costs borne by others outside the production process.

Carbon Fee

A charge imposed on the carbon content of fossil fuels, aimed at reducing carbon dioxide emissions.

Coase Theorem

An economic theory proposing that if trade in an externality is possible and there are no transaction costs, parties can negotiate solutions to conflicts that lead to an efficient outcome regardless of the initial allocation of property rights.

Pollution Tax

A tax levied on the amount of pollution emitted by firms to incentivize reduction in environmental harm.