The Supplier Performance Index (SPI) Equals (_____ Plus _____) Divided

question 77

Multiple Choice

The supplier performance index (SPI) equals (_____ plus _____) divided by _____.

• A)Total Purchases….Nonperformance Costs….Total Purchases
• B)Nonperformance Costs….Total Purchases….Nonperformance Costs
• C)Total Purchases….Appraisal Costs….External Failure Costs
• D)External Failure Costs….Internal Failure Costs….Total Purchases
• E)Transportation Costs….Appraisal Costs….Prevention Costs

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Definitions:

Promise

A person’s assurance that he or she will or will not do something.

Express Condition

A clearly stated stipulation in a contract that specifies an event or action that must occur for the contract to be fulfilled.

Payment

The transfer of money, goods, or services in exchange for a product, service, or obligation.

Negotiable

The term negotiable refers to a legal document, such as a check or bill of exchange, that signifies a promise to pay a specific amount of money and is transferable from one person to another.