In JIT Partnerships, Suppliers Have Several Concerns

question 98

Multiple Choice

In JIT partnerships, suppliers have several concerns. Which of the following is NOT such a concern?

• A) desire for diversification
• B) poor customer scheduling
• C) small lot sizes
• D) producing high enough quality levels
• E) customers' infrequent engineering changes

---

Definitions:

Effective EAR

The Effective Annual Rate is the actual return on an investment, taking into account the effect of compounding interest.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is often used to calculate interest payments.

Annual Coupon Payments

The fixed interest payments made by a bond issuer to the bondholders at regular intervals over the life of the bond.

Positive Slope

In graph terms, a positive slope indicates that as one variable increases, the other variable also increases, demonstrating a direct relationship.