A Quality Circle Studying the Problem of Incorrect Prices on Purchase

question 1

Multiple Choice

A quality circle studying the problem of incorrect prices on purchase orders identified several potential causes: incorrect information from requesting department, out-of-date catalogs from suppliers, defective computer software, and worker practices in the purchasing department.These potential cause-and-effect relationships are best illustrated by a _______________.

• A)check list
• B)Pareto chart
• C)control chart
• D)point-and-figure chart
• E)Fishbone diagram

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Definitions:

Lead Times

The total time that elapses between the initiation of a process and its completion, often critical in manufacturing, supply chain management, and project planning.

Lot-For-Lot

Lot-for-lot ordering is an inventory management technique where the order quantity is set equal to the demand for the next period, optimizing inventory levels and reducing holding costs.

EOQ

Economic Order Quantity; a model used in inventory management to determine the optimal order size that minimizes total holding costs and ordering costs.

Setup Cost

The expenses incurred in preparing equipment or processes for a production run or the start of an operation.