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question 35

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Understand the strategic importance of supply-chain management and its impact on the global success of a business.
Recognize the benefits and challenges of developing long-term relationships with suppliers.
Identify key strategies in supply-chain management including many-suppliers, few suppliers, vertical integration, and keiretsus.
Comprehend the significance of make-or-buy decisions in a firm's supply-chain strategy.

Definitions:

Direct Labor-hours

The total hours worked directly on the production of goods.

Merchandise Purchases Budget

A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.

Required Purchases

The quantity of goods a company needs to buy to meet its production plans and sales forecast.

Selling And Administrative Expense Budget

A detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period.

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