When the retailer decides to pass through some or all

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39. When the retailer decides to pass through some or all of the promotion to customers to spur sales, the result is a. a lowering of the price of the product for the end customer. b. increased purchases and thus increased sales for the entire supply chain. c. an increase in the amount of inventory held at the retailer. d. all of the above e. a and b only Answer: e Difficulty: Hard 40. When the retailer decides to pass through very little of the promotion to customers but purchase in greater quantity during the promotion period to exploit the temporary reduction in price, the result is 41. The manufacturer can justify offering trade promotions resulting in forward buying by retailers when 42. The retailer can justify the forward buying when 43. Replenishment orders in multi-echelon supply chains should be a. synchronized to increase cycle inventory and order costs. b. synchronized to facilitate supplier evaluation and selection. c. synchronized to keep cycle inventory and order costs low. d. separated to increase cycle inventory and order costs. e. separated to keep cycle inventory and order costs low. Answer: c Difficulty: Hard
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44. When developing estimates for holding and ordering costs, it is important to 45. Which cost takes into account the return demanded on the firm’s equity and the amount the firm must pay on its debt?
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