Retailers order in full truckload quantities from a distributor. Suppose, due to a slowdown in the economy,
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Retailers order in full truckload quantities from a distributor. Suppose, due to a slowdown in the economy, there is an industrywide decline in demand (i.e., each retailer experiences a reduction in its sales). If retailers continue to order in full truckload quantities, what will happen to the frequency of their orders?
a. It will decrease.
b. It will not change.
c. It will increase.
d. We cannot determine how it will change from the given information.
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Operations Management
ISBN: 9781260547610
2nd International Edition
Authors: Gerard Cachon, Christian Terwiesch
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