One Inherent Risk to Using Lean Philosophy Is That Companies

question 83

True/False

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes,weather,etc.than when using the traditional philosophy.

Recognize the role of contracts and their effectiveness in supply chain management.

Appreciate the benefits of third-party involvement in supply chain surplus through aggregation strategies.

Recognize the importance of evaluating supplier performance on various factors.

Identify the role of intermediaries in simplifying buyer-seller relationships.

---

Definitions:

Option's

Financial derivatives that grant the buyer the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.

Time Value

Refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Strike Price

The strike price, also known as the exercise price, is the set price at which an option's holder can buy (in the case of a call) or sell (in the case of a put) the underlying asset or security.

Call Premium

The amount by which the price of a call option exceeds its intrinsic value, reflecting the time value and volatility of the underlying asset.