One Way to Reduce the Risks for a Business That

question 94

Multiple Choice

One way to reduce the risks for a business that operates on just-in-time principles is to

• A) depend on one supplier for an important input.
• B) outsource the production of inputs only to advanced countries.
• C) hold an excess buffer stock of inventory.
• D) source inputs from several suppliers located in different countries.
• E) avoid using electronic data interchange.

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Definitions:

Sales Revenue

The income generated from the sale of goods or services before any costs or expenses are deducted.

Recognition Symbols

Visible or tangible signs used to acknowledge and honor achievements, status, or membership in a group.

Floor Clock

A tall, free-standing clock often housed in a wooden case, commonly known as a grandfather clock, traditionally used for both timekeeping and as a decorative element in rooms.

Shipping Costs

Expenses associated with transporting goods from one location to another, including freight charges, packaging, and handling fees.