Explanation:
Inventory is held to protect against variations in demand, distribution, and capacity, NOT to reduce system productivity. Additionally, it enables the use of affordable purchase order sizes. However, inventory management must be done correctly in order to strike the ideal balance between costs and advantages.
Explanation:
Cash moves upstream in the supply chain. The movement of the commodities is downstream.
Explanation:
The Min value in the Min-Max inventory model denotes the reorder point, and Max is the desired quantity. Maximum reorder quantity less Minimum (i.e. the difference between Min and Max).
Explanation:
An approach to marketing that prioritizes the needs of the consumer. the gathering and evaluation of data intended to assist sales and marketing decision-making to comprehend and support current and potential consumer needs. It entails payment processing, credit and adjustment management, catalog and order entry, and other tasks (APICS Dictionary).
Explanation:
The organizing and management of the procedures for transporting items back to their site of origin for repair, reclamation, recycling, or disposal after consumption.
Explanation:
As the new product is pushed and new channels are developed, the introduction stage typically results in financial losses. Sales volumes are also limited until the product is well-established. Although administrative expenditures associated with the development stage will also result in financial losses, these costs are often lower than those associated with "buying" into channels and vigorously advertising through promotions.
Explanation:
The design, planning, execution, control, and monitoring of supply activities with the goals of generating net value, developing a competitive infrastructure, utilizing global logistics, synchronizing supply with demand, and measuring performance globally are all described as being part of supply chain management in the APICS dictionary.
