Page 231 - E1 Integrated Workbook STUDENT 2018
P. 231
Answers to supplementary objective test questions
25 C
Activity Example
The company uses a just in time
Inbound logistics
ordering system to minimise inventory.
The company has invested in state of
Technology development
the art production line equipment.
The company offers significant
Marketing and sales
incentives to its dealer network.
The company offers an extended
After sales service
warranty of seven years.
26 A, B and C
Free delivery and returns is an example of a marketing strategy, which is a
primary activity.
The new warehouse will be considered part of inbound and outbound logistics –
both of which are primary activities. Note: how the building was acquired (e.g.
lease v buy) could have been considered part of procurement.
27 B, C and E
The four stages are Passive, Independent, Supportive and Integrative
28 C
The three approaches are Level capacity planning, chase demand planning and
demand management planning
29 B, C and E
Both reducing the cost of holding inventory and having more cash available are
advantages of minimising the amount of inventory.
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