Phoenix Systems Manufactures Computer Chips and Is Based in Canada

question 40

Multiple Choice

Phoenix Systems manufactures computer chips and is based in Canada. This year the company has begun working with suppliers in other countries, but the suppliers' quality levels have been erratic. Based on what you have read, which of these is the most cost-effective way to combat this problem?

• A)Hire a broker or intermediary in a supplier's country to determine if that country has a supplier capable of keeping quality standards high.
• B)Fire all the suppliers but one, and use the increased amount of work to bargain for a lower cost per chip.
• C)Hire only Canada-based suppliers so Phoenix can take advantage of lower transportation costs and can more closely supervise product creation.
• D)Eliminate all suppliers and create computer chips in house with a specially trained staff.

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Definitions:

Standardization

The process of developing and implementing technical standards to ensure consistency and compatibility of products and services.

Process Cycle Times

The duration required to complete a specific process or operation, often analyzed for efficiency improvements.

Competitive Position

A company's standing in the marketplace in relation to its competitors, determined by factors like market share, profitability, and brand strength.

Enhance Revenues

Strategies or actions taken to increase the income generated from the sale of goods or services.