Trends in Supply Management Include

question 11

Multiple Choice

Trends in supply management include:

• A)switching suppliers frequently through online auctions to get price discounts.
• B)limiting the number of suppliers and focusing on results from key suppliers.
• C)increasing the number of suppliers and developing closer relationships.
• D)negotiating shorter term contracts with fewer suppliers to increase leverage.
• E)greater concentration of the supplier selection decision in procurement.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Cash Break-even

The point at which a business's cash inflows match its cash outflows, meaning the business is making just enough to cover its cash operating expenses.

Capital Intensity

A measure of how much capital is used in the production process, indicating the extent to which a business or economy relies on capital equipment compared to labor.

Production Process

The series of actions or steps taken to manufacture a product from raw materials to the finished goods.