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2. The fundamental reason to hold stock for a firm is to provide a buffer between demand and logistics.( )

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In the western countries, “logistics” was first used in military. ( )

Generally speaking, higher inventory levels result in lower chances of a stock-out.( )

A product's form utility is created when value is added to the product through manufacturing, production or assembly process. However, logistics activity can improve form utility too. Which is an example of the creation of form utility by logisitcs activity?

A. When wood is cut and made into chair.
B. when firm's finance manager approves(允许)customer purchases on credit basis.
C. Advertising
D. the utilization and repackaging at distribution center

Aircraft manufacturer has a heavy inbound logistics system.

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