A bank pays a quoted annual (nominal) interest rate of 8%. However, it pays interest (compounded) daily using a 365-day year. What is the effective annual rate of return?

An export administrator, Beth Dorrell, notes, "A commodity raw material from Africa can be refined in Asia, then shipped to South America to be incorporated into a component of a final product that is produced in the Middle East and then sold around

the world." In light of this statement, describe supply chain, value chain, and logistics. List and briefly describe the most important distribution activities.

The trade-off that a supply chain manager must consider when planning safety inventory is

A) increasing product availability versus increasing inventory holding costs. B) decreasing product availability versus decreasing inventory holding costs. C) increasing product availability versus raising the level of safety inventory. D) decreasing product availability versus decreasing the level of safety inventory.