Question

Which of the following is an example of a logistical function that intermediaries perform?

a) Extending credit to customers
b) Maintaining inventory
c) Sharing competitive intelligence about customers
d) Purchasing goods for resale
e) Promoting products to attract consumers

Answer 1

Maintaining inventory is an example of a logistical function performed by intermediaries, which involves the management of product availability in the supply chain.

Step-by-step explanation:

Among the options provided, an example of a logistical function that intermediaries perform is b) maintaining inventory. Logistics involves managing the flow of goods through the supply chain, which includes ensuring that products are stocked and available for consumers when needed.

Financial intermediaries such as finance companies, like Bank of America Merrill Lynch Dealer Financial Services, Chase Auto Finance, or Ford Motor Credit Company, specialize in providing loans and handling the sale of installment contracts from goods sold on credit, but inventory management is specifically a logistically-oriented function.