Allen Inc,Which Produces Component Parts for Elevators,has Co-Located Its Engineering,logistics,and Procurement

Multiple Choice

Allen Inc.,which produces component parts for elevators,has co-located its engineering,logistics,and procurement divisions.Which of the following describes its demand-supply integration?

A) The promises that salespeople make to customers present challenges to the company's logistics arm.
B) Costs,more than customer specifications,determine which raw materials are placed into production.
C) The company gains efficiencies from ordering and using only those materials that lead directly to sales.
D) Raw material inventories are always stocked well above the levels dictated by production capacity.