A Company's Production Department Was Experiencing a High Defect Rate

question 143

Multiple Choice

A company's production department was experiencing a high defect rate on the assembly line,which was slowing down production and causing a higher waste of valuable direct materials.The production manager decided to purchase a higher grade of materials that would be more reliable.This would produce a(n) ________.

• A) unfavorable direct materials cost variance
• B) favorable direct labor cost variance
• C) favorable direct labor efficiency variance
• D) unfavorable direct materials efficiency variance

Identify the role of external factors such as political contributions, customer proximity, and externalities in supply chain decisions.

Comprehend the significance of network design decisions on supply chain performance and the constraints they impose.

Analyze demand distribution and its implications for firm location and market share.

Understand the considerations in supply chain network design, including facility location, capacity allocation, and responsiveness to market demands.

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Definitions:

Human Motivation

The study of what drives individuals to initiate, direct, and sustain behaviors to satisfy their needs and achieve goals.

Validity Effect

The tendency of people to believe that a statement is true or valid simply because it has been repeated many times.

Familiarity Effect

A psychological phenomenon whereby people tend to develop a preference for things merely because they are familiar with them.

Cognitive Dissonance

The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.