Effectively and Efficiently Applying Technology to the Supply Management Process

question 18

Multiple Choice

Effectively and efficiently applying technology to the supply management process will result in:

• A) increased clerical effort because there is more data entry than in a manual system.
• B) damaged buyer-supplier relationships because of the impersonal nature of electronic communication.
• C) an ability to reduce the total cost of doing business by enabling just-in-time systems, bar-coding applications, integrated manufacturing, and electronic funds transfers.
• D) poorer negotiation planning and preparation because of the time spent accessing and analyzing data.
• E) a decline in operating performance because of the volume of information to be analyzed and considered before making a decision.

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Definitions:

Stock Market

A public market for buying and selling company stock and derivatives at an agreed price; it is a key indicator of the health of an economy.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period, used as a broad measure of economic performance.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.

Future Exchange Rate

The anticipated value of one currency in terms of another currency at a future date, often used in hedging and trading strategies.