Applying Lean Systems to Supply Chain Relationships Has Which of the Following

question 36

Multiple Choice

Applying lean systems to supply chain relationships has which of the following risks?

• A)It encourages companies to buy at the lowest unit price.
• B)It encourages firms in the supply chain to hold extra inventory to protect themselves from failure.
• C)It makes the supply chain more vulnerable to performance breakdowns.
• D)All of these.

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Definitions:

Leveraged Buyouts

The process of purchasing another firm largely through the use of borrowed funds, such as bonds or loans, to cover the acquisition expenses.

Managerial Efficiencies

Refers to the effectiveness and productivity with which managers and administrative leaders run a company, aiming to maximize output with minimal wasted effort or expense.

Target

In a business context, a target can refer to a specific goal or benchmark aimed to be achieved, such as sales targets or performance targets.

Individual Identity

The distinctive characteristics or personality that makes a person unique from others.