Operations Management
Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 2CQ
Summary Introduction

To identify: The statement that best explains the given situation.

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Safety stocks are used a. To minimize transportation time b. To provide protection against the uncertainties of supply and demand c. To allow less expensive purchases by buying more d. To offer better incentives e. To attract more customers
Which of the following best explains why distributors help to reduce the space retailersneed to store inventory?a. Distributors allow retailers to receive truckload shipments more frequently.b. Distributors decrease the total distance products travel in the supply chain.c. Distributors allow retailers to receive smaller quantities of each supplier’s product.d. Distributors increase the time that inventory spends in the supply chain.
Which of the following statements best explains why distributors tend to spend less onstorage space per square meter per year than retailers?a. Distributors provide break bulk service.b. Distributors don’t actually make products.c. Distributors can store more items per square meter and require space that is less aesthetically pleasing.d. Distributors enjoy higher gross margins than retailers.
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