PART TW0
Questions 9—14
·Read this text taken from an article about logistics and corporate profit performance．
·Choose the best sentence to fill each of the gaps．
·For each gap 9—14。mark one letter(A—H)on your Answer Sheet．
·Do not use any letter more than once．
·There is an example at the beginnin9，(0)．
A However if management concentrates on system changes that improve logistics efficiency and／or effectiveness，it may be able to satisfy all of the firm's objectives．
B Usually，management assumes that revenues and other costs will remain the same．
C They do so by placing smaller，more frequent orders．which may increase total logistics cost for both the manufacturer and its customers．
D In either set of circumstances．the increased cost of transportation and／or production or the lost sales contribution could far exceed the savings in inventory carrying cost．E If a manufacturer changes its terms of sale，for example，the effect on wholesalers and retailers will be twofold．
F In addition simply reducing the level of inventory can significantly increase the cost of logistics if current inventories have been set at a level that allows the firm to achieve least total cost logistics for a desired level of customer service．
G Alternatively pressure to reduce expenses may preclude the use of premium transportation or increased production setups to achieve the desired customer service levels with smaller inventory．
H The two most common strategies used to improve cash flow and return on assets are：(1)reducing accounts receivable and(2)reducing the investment in inventory，as inventories and accounts receivable are a major’ portion of corporate assets
Questions 9—14
·Read this text taken from an article about logistics and corporate profit performance．
·Choose the best sentence to fill each of the gaps．
·For each gap 9—14。mark one letter(A—H)on your Answer Sheet．
·Do not use any letter more than once．
·There is an example at the beginnin9，(0)．
A However if management concentrates on system changes that improve logistics efficiency and／or effectiveness，it may be able to satisfy all of the firm's objectives．
B Usually，management assumes that revenues and other costs will remain the same．
C They do so by placing smaller，more frequent orders．which may increase total logistics cost for both the manufacturer and its customers．
D In either set of circumstances．the increased cost of transportation and／or production or the lost sales contribution could far exceed the savings in inventory carrying cost．E If a manufacturer changes its terms of sale，for example，the effect on wholesalers and retailers will be twofold．
F In addition simply reducing the level of inventory can significantly increase the cost of logistics if current inventories have been set at a level that allows the firm to achieve least total cost logistics for a desired level of customer service．
G Alternatively pressure to reduce expenses may preclude the use of premium transportation or increased production setups to achieve the desired customer service levels with smaller inventory．
H The two most common strategies used to improve cash flow and return on assets are：(1)reducing accounts receivable and(2)reducing the investment in inventory，as inventories and accounts receivable are a major’ portion of corporate assets