All of the Following Are Examples of How Supply Management

question 1

Multiple Choice

All of the following are examples of how supply management should monitor and anticipate activity in its supply market except _____.

• A)ensuring that cost accounting keeps track of historical prices paid
• B)forecasting long-term supply and prices for its basic commodities
• C)monitoring technological innovations that impact its primary materials or make substitute materials economically attractive
• D)evaluating not only its existing suppliers but also other potential suppliers
• E)providing timely visibility to new-product requirements

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Definitions:

Capacity Increment

The addition or increase in a system's or facility's ability to produce goods or services.

Fixed Costs

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

Drum

In production and project management, often refers to the constraint or bottleneck resource that dictates the pace at which a process can run.

Buffer

A zone of protection or safety margin that reduces the risk of fluctuations or uncertainties affecting the primary system or process.