(a)
Interpretation: Average transportation inventory via oceanic ship service is to be computed.
Introduction: Inventory is the stock of goods that is kept by a company to meet the consumer demand. The inventory can be in transit, between activities, or finished goods. Transportation inventory is the inventory that is not yet available to meet consumer demand unless they have been transported to distribution warehouse. Thus, pace of transportation service is computed using average transport inventory.
(b)
Interpretation: Average transportation inventory via air freight service is to be computed.
Introduction: Inventory is the stock of goods that is kept by a company to meet the consumer demand. The inventory can be in transit, between activities, or finished goods. Transportation inventory is the inventory that is not yet available to meet consumer demand unless they have been transported to distribution warehouse. Thus, pace of transportation service is computed using average transport inventory.
(b)
Interpretation: Other factors that would be helpful in comparing alternatives better.
Introduction: Inventory is the stock of goods that is kept by a company to meet the consumer demand. The inventory can be in transit, between activities, or finished goods. Transportation inventory is the inventory that is not yet available to meet consumer demand unless they have been transported to distribution warehouse. Thus, pace of transportation service is computed using average transport inventory.
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