Reducing the Obsolescence and Waste of Maintenance, Repair, and Operating

question 8

Multiple Choice

Reducing the obsolescence and waste of maintenance, repair, and operating MRO) supplies through better materials and inventory management will:

• A) reduce the costs of disposing of MRO items that are obsolete or waste.
• B) reduce carrying cost by lowering inventory levels, especially of obsolete items.
• C) improve environmental performance by reducing waste that goes into landfills or incinerators.
• D) simultaneously reduce costs and improve environmental performance.
• E) have little impact because MRO is a small percentage of annual spend and the items usually have low environmental low-impact.

Understand the concept of the network effect and its significance in adding value to a product.

Identify the importance of conducting a situation assessment and understanding its external factors.

Comprehend the economies of scope and their impact on production costs.

Understand the unique physical and behavioral traits of echinoderms.

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Definitions:

Moral Hazard

A situation where one party takes greater risks because they do not have to bear the full consequences of their actions.

Subsidized

Financial support provided by a government or organization to reduce the cost of producing goods or services, often to encourage consumption or investment.

Co-pays

Fixed amounts paid by patients for healthcare services at the time of service, with the balance covered by insurance.

Deductibles

Deductibles are the amount paid out of pocket by the policyholder before an insurance provider pays any expenses.