A Sound Allocation System Should

question 1

Multiple Choice

A sound allocation system should:

• A)be cheap and easy to administer
• B)provide incentives for cost control
• C)charge in proportion to amount used or benefit received
• D)be perceived as equitable by those who are charged
• E)All of the choices are correct

Grasp the importance of aligning logistics and supply chain metrics with corporate strategy for achieving service quality, efficiency, or low-cost objectives.

Understand financial metrics and calculations relevant to supply chain and logistics, such as Gross Margin, Strategic Profit Model (SPM), and Earnings Before Interest and Taxes (EBIT).

Distinguish between metric, measure, and index, and understand the concept of order cycle time (OCT) and its implications.

Appreciate the importance of involving customers and suppliers in the development of metrics.

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Definitions:

Exit Incentives

Benefits offered to employees to encourage voluntary resignation or retirement, often used in downsizing or restructuring initiatives.

Lending Workers

The practice of temporarily assigning employees to work for another organization or within a different part of the same organization.

Extending Reductions

The process of increasing the scope or duration of cost-cutting or resource-saving measures.

Deep Water Exploration

The process of investigating and exploring the seabed and sub-sea layers in oceanic environments at great depths for resources or scientific research.